E Apr 21, 2016 - Annual Report 2015

2 Financial Highlights
Content
3 Fact Sheet at a Glance
6 Chairmans Statement
8 CEOs Report
12 Management Discussion and Analysis
25 Biographies of Directors
31 Corporate Governance Report
47 Report of the Directors
63 Independent Auditors Report
65 Consolidated Statement of
Profit or Loss
Comprehensive Income
Financial Position
68 Consolidated Statement of Changes
in Equity
69 Consolidated Statement of Cash Flows
71 Notes to Financial Statements
121 Glossary
123 Financial Summary
124 Corporate Information
Clear Media Limited Annual Report 2015
2 Financial Highlights
2015 2014
FULL YEAR RESULTS (HK$000)
Turnover 1,832,723 1,760,676
EBITDA 792,909 708,857
Operating profit 435,969 370,891
Net profit 280,522 240,214
Basic EPS (HK cents) 51.92 44.75
BALANCE SHEET DATA (HK$000)

Cash and cash equivalents 689,322 1,049,604
Total assets 3,634,781 3,875,511
Total liabilities 832,339 877,883
Equity attributable to equity holders of the parent 2,687,663 2,916,237
CASH FLOW DATA (HK$000)

Cash generated from operations 646,022 680,452
Net (decrease)/increase in cash and cash equivalents (329,902) 175,595
Free cash flow 176,423* 282,551*
FINANCIAL RATIOS
Current ratio 2.24 times 2.44 times
EBITDA margin 43.3% 40.3%
Net profit margin 15.3% 13.6%
Debt-to-equity ratio 0.0% 0.0%
1,832,723
1,760,676
280,522
792,909
1,647,455
1,522,036
708,857
1,485,898
240,214
662,317
219,236
619,245
1,261,600
1,260,115
201,008****
547,456
187,542
1,118,149
166,067
166,068***
455,757
472,960***
293,211**
31,258**
08 09 10 11 12 13 14 15 08 09 10 11 12 13 14 15 08 09 10 11 12 13 14 15
Turnover (HK$000) EBITDA (HK$000) Net Profit (HK$000)
* Free cash flow is defined as EBITDA (before gain and losses on disposal, impairment and write-down of concession rights and other assets and
equity-settled share option expenses) less cash outflow on capital expenditure, less income tax and net interest expense.
** Amounts include the effect of the one-off non-cash charges resulted from the change in display format mandated by the Shanghai authorities
preparing for the 2010 World Expo.
*** Amounts include the effect of the Share Option Expenses Adjustment of HK$20 million recorded in the year ended 31 December 2010.
**** Amounts include the effect of the withholding tax provision of HK$27 million for future distribution of profits from the Companys PRC
subsidiary.
Fact Sheet at a Glance 3
Shareholder Information as at 31 December 2015
Clear Channel KNR
Neth Antilles NV
50.42%
International Value
Advisers, LLC
19.51%
Nominal Value: HK$0.10 per share
Listing: Main Board of The Stock Exchange of Hong Kong Limited
Listing Date: 19 December 2001
Ordinary Shares
Shares outstanding as at 31 December 2015 541,700,500 shares
Market Capitalization
as at HK$8.00 per share HK$4,334 million
(based on closing price on 31 December 2015) (approximately US$557 million)
Stock Code
Hong Kong Stock Exchange 100
Reuters 0100.HK
Bloomberg 100 HK
Financial Year End 31 December

BUILD
6 Chairmans Statement
Dear Shareholders,
I am pleased to report to you another year of We envisaged well in advance that 2015 would
encouraging revenue growth to a new record be a difficult year and implemented keys
high of HK$1,833 million in 2015, up 4.1% year measures to contain operating costs and
on year. We faced a challenging operating overhead expenses.
environment throughout the year as the
economic growth in China continued to In response to changing customer needs, aside
moderate. Our customers chose to wait until from supporting traditional industries, our sales
the last possible moment to commit their force focused efforts to recruit new clients
advertising budgets, continuing the practice targeting growing industries such as
they had in the last two years. e-commerce and IT digital resulting in
occupancy rate increase in a number of key
We achieved another year of solid growth cities.
driven by the following initiatives:
These initiatives resulted in an EBITDA growth
We capitalized on lower asset prices and of 11.9% to HK$793 million in 2015.
completed several panel acquisitions in mid-
tier cities which increased the number of panels Our Board recommended payment of a 2015
by 7% year-on-year to 45,000. final dividend of HK16 cents per share, as
compared to the level of HK15 cents per share
in 2014, representing a payout ratio of 30.8%.
As of 31 December 2015, we had net cash
balance of HK$689 million.
Chairmans Statement 7
In terms of our digital panel development, we I would like to take this opportunity to express
are continuing our digital network test in my sincere gratitude to our Board, our
Nanjing and now have over 250 panels in the management and our staff for their continued
city. We are exploring to introduce digital hard work and dedication to our Company. We
products to other cities. are committed to enhancing our advertising
networks for advertisers to promote their
Looking ahead to 2016, we remain cautious products and services, underpinned by our
about the overall trading environment. professional and world-class service standards.
Management expects the revenue performance We also look forward to optimize the return for
from various industries, that our advertising our shareholders.
clients operate in, to be mixed in 2016. Our
sales team will work towards leveraging on our
display network to drive revenue forward.
Yours sincerely,
Joseph Tcheng
Chairman
8 CEOs Report
During 2015, economic growth in Mainland China continued to moderate and the operating environment remained
challenging, with numerous last minute changes and cancellation of order.
Given the challenging environment, we have focused on recruiting new customers while controlling the operating costs to
mitigate any risk to our profit targets for the year.
The Groups bus shelter advertising revenue net of value added tax, increased by 4.1% to HK$1,832.7 million. The
depreciation of RMB impacted revenue growth by approximately 2.0%. Its earnings before interest, tax, depreciation and
amortisation (EBITDA) increased by 11.9% to HK$792.9 million (2014: HK$708.9 million) mainly due to higher turnover of
the core bus shelter advertising business, lower direct rental costs due mainly to the reversal of certain rent provision which
has resulted in HK$25.8 million of provision being released during the year, lower electricity and cleaning and maintenance
costs, partially offset by the increase in the selling, general and administrative expenses during the year. EBITDA margin
increased to 43.3% (2014: 40.3%). The Groups earnings before interest and tax (EBIT) increased by 17.5% to HK$436.0
million for the year from HK$370.9 million in 2014, following the higher EBITDA and lower level of amortization expenses
increment as certain concession rights have been fully amortized during the year. Net profit increased by 16.8% to HK$280.5
million (2014: HK$240.2 million) for the year ended 31 December 2015 and net profit margin increased to 15.3% (2014:
13.6%). Basic earnings per share increased by 16.0% to HK51.92 cents. The Directors proposed a final dividend of HK16 cents
per share (2014: HK15 cents).
As of 31 December 2015, Clear Media operated the most extensive standardized bus shelter advertising network in Mainland
China, with a total of more than 45,000 panels (2014:42,000 panels) covering 26 cities. The average selling price before value
added tax (ASP) decreased modestly by 1.9% during the year, primarily due to the depreciation of RMB against the Hong
Kong Dollar. The average number of bus shelter panels increased by 6.9%. The overall occupancy rate decreased slightly to
61.6% (2014: 62.4%). The revenue growth was primarily driven by the increase in its average number of panels in operation
during the year.
For the year ended 31 December 2015, the revenue from Guangzhou, Shanghai and Beijing increased by 2.8% to HK$1,064.7
million (2014: HK$1,035.2 million). Among the three key cities, the revenue performance was led by Beijing, followed by
Shanghai, and then Guangzhou.
The revenue from Beijing increased by 7.1% to HK$507.1 million (2014: HK$473.5 million) due to a 2.9% increase in the
average number of bus shelter panels and a higher occupancy rate at 75.3% (2014: 72.2%). The ASP decreased marginally by
0.2%.
The revenue from Shanghai increased by 1.3% to HK$231.3 million (2014: HK$228.4 million) due to a 3.6% increase in the
average number of bus shelter panels. The ASP decreased by 1.0% and the occupancy rate decreased to 49.5% (2014: 50.1%).
The revenue from Guangzhou decreased by 2.1% to HK$326.2 million (2014: HK$333.3 million), as ASP decreased by 7.7% due
to tough price competition. The average number of bus shelter panels increased by 3.8% and the occupancy rate increased
to 67.5% (2014: 66.0%).
The revenue from all mid-tier cities increased by 4.5% to HK$862.1 million during the year (2014: HK$825.1 million). The ASP
decreased by 0.9% and the occupancy rate decreased to 58.8% (2014: 61.1%). The average number of bus shelter panels
increased by 9.5%.
CEOs Report 9
Among the mid-tier cities where the Company operates, Hangzhou, Nanjing, Shenyang, Jinan, Wuhan, Foshan, Wuxi,
Nanchang and Zhengzhou performed better with double digit growth in revenue.
During the year the Group continued to take advantage of lower asset prices in the outdoor media market and were to
maintain our capital expenditure at a level not significantly less than that in 2014. This allowed Clear media to position its
business to maintain long-term profitable growth.
In December 2015, the Group added more than 40 new digital panels in Nanjing. Total sales generated from the new digital
operation amounted to HK$15.0 million in 2015 (2014: HK$5.5 million).
The operating environment will remain challenging. Management expects the revenue performance from various industries
that our advertising clients operate in, to be mixed in 2016. Our sales team will work towards leveraging on our display
network to drive revenue forward.
We expect to maintain our capital expenditure budget for 2016 at a similar scale to 2015 as we continue to identify
acquisition opportunities both in major cities and new cities to extend the breath and depth of the reach of our network,
taking advantage of the favorable asset price levels.
In addition, we continue to test new digital opportunities in new cities.
In the long run, Clear Media is optimistic about the prospects of the advertising sector in China on the back of a continuous
increase in domestic consumer spending.
Han Zi Jing
Chief Executive Officer
Clear Media Limited
Management
Discussion and
Analysis
DESCRIPTION OF THE BUSINESS AND Given the challenging environment, we have

COMPETITIVE POSITION focused on recruiting new customers while
Clear Media is the largest bus shelter controlling the operating costs to mitigate
advertising panel operator in China. We have any risk to our profit targets for the year.
a portfolio of concession rights contracts
signed with the local transportation During the year, the revenue contributions
authority of the cities that we operate in. In a from customers in the e-commerce,
typical multiyear concession rights contract, entertainment, fashion, food and IT digital
we are obligated to install new bus shelters, product industries increased. In particular,
pay rental for and maintain the bus shelters the revenue contribution from the
under our management; and power up the e-commerce sector increased to 15% of
bus shelter lighting facilities at night in revenue in 2015 from 9% in 2014. We
exchange for the right and autonomy to sell continued to take advantage of lower asset
the advertising panel on these bus shelters. prices in the outdoor media market and were
The actual terms of the concession rights to maintain our capital expenditure at a level
contracts can vary from contract to contract. not significantly less than that in 2014. This
As of 31 December 2015, the weighted allo wed us t o p o sit io n o ur b usi ness t o
average remaining term of the concession maintain long-term profitable growth.
rights held by us was approximately seven
years. STRATEGY
Strategic Expansion
We operate 45,000 bus shelter advertising Our key strategy is to continue to expand our
panels in 26 cities across China. We have bus shelter advertising panel network in
market share of more than 60% in key cities, China in selected cities that will mean long-
including Beijing, Shanghai and Guangzhou. term strategic value to our business. The
During the year, the total revenue from these strategic value includes profitability, growth
key cities accounted for more than half of prospects, competitive position and
the total bus shelter revenue. Our bus shelter customer needsetc.
panel advertising space is mostly sold to
both local and international advertisers Customer Focus and Customer Relations
through their advertising agents with our Management
sales people working with both the agents
Our key focus is on providing professional
and the advertisers. A typical market
services to all customers, including those
campaign is two-week long but it can be
represented by the 4As. More than 400 sales
longer than two weeks depending on
personnel service both our customers and
advertisers decisions.
their advertising agencies directly. To us only
result matters. We will maintain close tie with
INDUSTRY OVERVIEW
the customer to constantly obtain feedback
During 2015, economic growth in Mainland on the quality of advertising campaign and
China continued to moderate and the services render, provide market research
operating environment remained conducted either by independent research
challenging, with numerous last minute companies or jointly by the customers and
changes and cancellation of order. us to assess the effective of the campaign,
and also implementing internal control
pr o c ed ur e s t o m o n it o r q u al it y o f s a le s
services provided.
26%
12%
Turnover
by Geographical
2 015
Location in 17%
Other cities 45%
Medical institu
3%
Fa rn
O
sh am
io en
tions/Device
n t
& s
5%
IT 14%
Realty
9%
Beverages
11%
Product Quality and Innovation Change in Laws, Regulations, Policies or

We work towards maintaining high quality of Directives from Central or Local
bus shelters with format as standardized Government Departments
nationwide as practicable. We implement Our bus shelter operations in 26 cities in
bus shelter refurbishment plans, when China are subject to various laws,
needed, to upgrade the quality of our bus regulations, policies and directives from the
shelters. Our management monitors new central and local government departments
technology in the outdoor industry in local in China. During the year ended 31
and international street furniture markets. December 2015, we are not aware of any
Our first digital advertising panel was material non-compliance with any laws or
launched in the second half of 2014 and we regulations in China. Any unfavorable
now operate more than 250 digital panels in change in the related laws, regulations,
Nanjing. policies or directives from the central or local
government departments may adversely
Financial Discipline and Efficiency affect our bus shelter operations and our
We have strict discipline in managing our financial performance.
financial resources and capital investment.
Our Capital Expenditure Committee regularly Concession Rights
reviews and recommends our capital In executing our strategy, we will need to
expenditure projects typically including our renew existing concession rights before
concession rights renewal and acquisitions, expiry and acquisition of new concession
major bus shelter refurbishment and digital rights. The renewal or acquisition of
panel expansion plans. Our Cash Committee concession rights typically requires
from time to time reviews our expected cash additional investment. Internally, we
needs and evaluate the adequacy and the evaluate the concession rights renewal or
options for utilization of the Groups cash acquisition opportunity with financial
with a view to enhance shareholders discipline.
interests, and make related
recommendations to the Board. Currency
The Groups exposure to foreign exchange
PRINCIPAL RISKS risk is set out in the exposure to foreign
Risks Relating to Economic Development exchange risk section on page 21.
In addition to the availability of our bus
shelter advertising space from time to time, Cash Deposits
our revenue performance depends on the We are a net cash company with total cash
appetite of our advertising clients to use our and cash equivalents at HK$689.3 million as
platform to implement their marketing of 31 December 2015. We have a policy for
campaign. There is common belief that there prudent management of our cash and cash
is general correlation between advertisers equivalents the bulk of which were placed as
appetite to do marketing and the macro- bank deposits with various commercial banks
economic development, more specifically in Hong Kong and China. We have a policy of
the social consumption. Any significant maintaining our cash deposits placed with
change in the pace of macro-economic any one particular bank to be less than 20%
development will likely affect our overall of our total cash and cash equivalents. Our
revenue performance.
Management Discussion and Analysis 15
Audit Committee reviewed the list of our caps for the related advertising commission
bank deposits and the credit ratings of the of HK$33.0 million, HK$34.0 million and
underlying banks during the year. HK$35.0 million for the years 2016, 2017 and
2018, respectively. Such framework
Contingent Liabilities agreement was approved by the
Details of the Groups contingent liabilities shareholders in the special general meeting
are set out in the Management Discussion held on 28 January 2016.
and Analysis section on pages 22 to 23.
OPERATION OVERVIEW
CHANGE IN BOARD MEMBERS Bus Shelter Advertising Business
SUBSEQUENT TO 31 DECEMBER 2015 As of 31 December 2015, Clear Media
Effective from 1 January 2016, Mr. Mark operated the most extensive standardized
Thewlis relinquished his positions as an bus shelter advertising network in Mainland
Executive Director, the Chairman of the China, with a total of more than 45,000
Board, the Chairman of the Capital panels (2014: 42,000 panels) covering 26
Expenditure Committee and the Directors cities. Our bus shelter advertising revenue
Securities Dealing Committee and a member net of value added tax, increased by 4.1% to
of the Cash Committee; and Mr. Joseph HK$1,832.7 million. The depreciation of RMB
Tcheng was appointed as an Executive impacted revenue growth by approximately
Director, the Chairman of the Board, the 2.0%.
Chairman of the Nomination Committee, the
Capital Expenditure Committee and the The average selling price before value added
Directors Securities Committee; and a tax (ASP) decreased modestly by 1.9%
member of the Cash Committee. during the year, primarily due to the
depreciation of RMB against the Hong Kong
NEW FRAMEWORK AGREEMENT FOR THE Dollar. The average number of bus shelter
CONTINUING CONNECTED TRANSACTIONS panels increased by 6.9%. The overall
ON ADVERTISING COMMISSION occupancy rate decreased slightly to 61.6%
ARRANGEMENTS (2014: 62.4%). The revenue growth was
On 22 December 2015, Hainan White Horse primarily driven by the increase in our
Advertising Media Investment Company average number of panels in operation
Limited, the principal operating subsidiary of during the year.
the Company entered into a three-year
framework agreement, on procuring Due to the change in tax regulation, the
advertising sales in return for an advertising business tax for our bus shelter advertising
commission, with connected parties business was replaced by value added tax in
including Guangdong White Horse Shanghai, Beijing, Guangzhou and Shenzhen
Advertising Company Limited (GWH), effective from 1 January 2012, 1 September
Ha inan W hite Hors e Media Advert isi ng 2012 and 1 November 2012, respectively.
Company Limited (WHM) and White Horse Business tax of all other China cities was
(Shanghai) Investment Company Limited replaced by value added tax effective from 1
with annual transaction caps for the gross August 2013. These tax charges had the
value of sales of HK$414.0 million, HK$424.5 effect of reducing our turnover by HK$109.5
million and HK$435.0 million and the annual million in 2015 (2014: HK$105.6 million).
Key Cities Among the mid-tier cities where the

For the year ended 31 December 2015, the Company operates, Hangzhou, Nanjing,
revenue from Guangzhou, Shanghai and Shenyang, Jinan, Wuhan, Foshan, Wuxi,
Beijing increased by 2.8% to HK$1,064.7 Nanchang and Zhengzhou performed better
million (2014: HK$1,035.2 million). Among with double digit growth in revenue.
the three key cities, the revenue performance
was led by Beijing, followed by Shanghai, Digital
and then Guangzhou. In December 2015, more than 40 new digital
panels were added in Nanjing. Total sales
Beijing generated from the new digital operation
The revenue from Beijing increased by 7.1% amounted to HK$15.0 million in 2015 (2014:
to HK$507.1 million (2014: HK$473.5 million) HK$5.5 million).
due to a 2.9% increase in the average
number of bus shelter panels and a higher FINANCIAL REVIEW
occupancy rate at 75.3% (2014: 72.2%). The Turnover
ASP decreased marginally by 0.2%. The Groups total turnover increased by 4.1%
to HK$1,832.7 million during the year ended
Shanghai 31 December 2015.
The revenue from Shanghai increased by
1.3% to HK$231.3 million (2014: HK$228.4 Other Income
million) due to a 3.6% increase in the average Other income decreased from HK$20.3
number of bus shelter panels. The ASP million in 2014 to HK$9.9 million mainly due
decreased by 1.0% and the occupancy rate to lower bank fixed deposits interest income.
decreased to 49.5% (2014: 50.1%).
Expenses
Guangzhou During the year ended 31 December 2015,
The revenue from Guangzhou decreased by the Groups total direct operating costs,
2.1% to HK$326.2 million (2014: HK$333.3 including rental, electricity and maintenance
million), as ASP decreased by 7.7% due to costs, and sales, cultural and other levies,
tough price competition. The average decreased by 3.3% to HK$683.3 million (2014:
number of bus shelter panels increased by HK$706.8 million).
3.8% and the occupancy rate increased to
67.5% (2014: 66.0%). Despite the 7% increase in average inventory
size, direct rental costs decreased by 1.5%
Mid-tier Cities during the year. This was due mainly to the
The revenue from all mid-tier cities increased reversal of certain rent provision made in the
by 4.5% to HK$862.1 million during the year normal course of business which was subject
(2014: HK$825.1 million). The ASP decreased to negotiations on an ongoing basis with the
by 0.9% and the occupancy rate decreased relevant authority. The reversal has resulted
to 58.8% (2014: 61.1%). The average number in HK$25.8 million of provision being
of bus shelter panels increased by 9.5%. released during the year.
Electricity costs decreased by 2.9% mainly EBITDA

due to the installation of LED lighting on The Groups earnings before interest, tax,
new shelters and also conversation of part of depreciation and amortisation (EBITDA)
the existing plant from the traditional increased by 11.9% to HK$792.9 million
fluorescent light tube to LED which help to (2014: HK$708.9 million) mainly due to
save electricity. higher turnover of the core bus shelter
advertising business, lower direct rental
Cleaning and maintenance costs decreased costs due mainly to the reversal of certain
by 11.5% mainly due to cost control and rent provision which has resulted in HK$25.8
adjustment of the cleaning and maintenance million of provision being released during
expenses subsidized by the Hainan White the year, lower electricity and cleaning and
Horse Advertising Co., Ltd., (the Hainan maintenance costs, partially offset by the
White Horse) the non-controlling increase in the selling, general and
shareholder of Hainan White Horse administrative expenses during the year.
Advertising Media Investment Company EBITDA margin increased to 43.3% (2014:
Limited (the WHA Joint Venture).This 40.3%).
cleaning and maintenance subsidy
arrangement was made and has been in A reconciliation of the Groups profit before
effect since 2001 as part of the pre-listing re- tax to EBITDA is as follows:
organisation exercise and is based on a
certain percentage of the cleaning and 2015 2014
maintenance cost. The ratio is negotiated on HK$000 HK$000
a yearly basis, with an aim to match the
subsidy payable by Hainan White Horse to Profit before tax 443,628 387,478
the cleaning and maintenance entity against
the dividend attributable to this non- Add:
controlling shareholder. The cleaning and Finance costs 2,247 3,732
maintenance subsidy increased by 166.4% to Depreciation of
HK$38.9 million (2014: HK$14.6 million). property, plant
and equipment 11,950 10,251
During the year ended 31 December 2015, Amortisation of
sales, cultural and other levies increased by concession rights 344,990 327,716
6.8%, mainly due to the increase of total
Subtotal 359,187 341,699
revenue.
Less:
Total selling, general and administrative
Interest income (9,906) (20,319)
expenses, excluding depreciation and
amortization, increased by 4.9% to HK$349.9 EBITDA 792,909 708,858
million in 2015 mainly due to higher
impairment losses of trade receivables and
office rental expenses, partially offset by
lower wages and salaries, cost control
measure and the reversal of the cash-settled
share-based payment expenses amounting
to HK$9.0 million.
EBIT As at 31 December 2015, the Group

The Groups earnings before interest and tax recognized a deferred tax liability of HK$20.7
(EBIT) increased by 17.5% to HK$436.0 million (31 December 2014: HK$23.1 million)
million for the year from HK$370.9 million in in respect of the withholding tax on future
2014, following the higher EBITDA and lower dividend distribution by WHA Joint Venture.
level of amortization expenses increment as
certain concession rights have been fully Net Profit
amortized during the year. Net profit increased by 16.8% to HK$280.5
million (2014: HK$240.2 million) for the year
Finance Costs ended 31 December 2015 and net profit
During the year, the Group carried no debt, margin increased to 15.3% (2014: 13.6%).
hence the finance costs incurred were
minimal at HK$2.2 million (2014: HK$3.7 Cash Flow
million). Net cash flows from operating activities
decreased by 1.4% to HK$557.0 million for
Taxation the year ended 31 December 2015 from
According to the PRC Enterprise Income Tax HK$564.7 million in the previous year. The
Law effective from 1 January 2008, the WHA decrease was due mainly to the increase in
Joint Venture, an indirect majority-owned prepayments, deposits and other receivables
subsidiary of the Company established in the following adjustment of the cleaning and
Hainan Special Economic Zone of the PRC, maintenance expenses subsidized by the
was subject to a corporate income tax of 25% Hainan White Horse, increase in account
(2014: 25%) on its assessable profits arising receivables balances following slower
in the PRC for the year 2015. payment from some of the major customers,
including balances due from the related
Further, a 10% (or a lower rate if there is a tax parties, and the effect of working capital
treaty between Mainland China and the changes, partially offset by the higher
jurisdiction of the foreign investors) operating profit for the year.
w i t hhol d i ng ta x i s l e v i e d o n d i v i d e n d s
declared to foreign investors from the Net cash flows used in investing activities
foreign investment enterprises established in increased to HK$508.6 million for the year
Mainland China. The requirement is effective ended 31 December 2015 from HK$294.4
from 1 January 2008 and applies to earnings million in the previous year mainly due to
after 31 December 2007. The Group is higher investment in certain bus shelter
therefore liable for withholding taxes on acquisitions in 2015, higher fixed assets
dividends distributed by the WHA Joint addition and the payment for 2014 capital
Venture, a subsidiary of the Company expenditure projects during the year.
established in the Hainan Special Economic
Zone of the PRC. Net cash flows used in financing activities
amounted to HK$378.3 million for the year
Income tax expense of the Group increased ended 31 December 2015. This was mainly
to HK$120.1 million for the year ended 31 due to the 2014 final and special dividends
December 2015 from HK$108.1 million in paid to the shareholders of the Group during
2014. This was mainly due to the increase in the year.
assessable profits of the core bus shelter
advertising business during the year.
Free cash flow, defined as EBITDA (before The average accounts receivable outstanding
gain and losses on disposal, impairment and days, on a time weighted basis, remained
write down of concession rights and other stable at 117 days for the current year (2014:
assets and equity-settled share option 117 days). As at 31 December 2015, the
expenses) less cash outflow on capital provision for impairment of accounts
expenditure, less income tax and net interest receivable increased to HK$31.4 million from
expense, decreased to HK$176.4 million for HK$21.2 million as at 31 December 2014
the year ended 31 December 2015 compared mainly due to the slower collection from
to HK$282.6 million in the previous year. The customers and increase in balance in the
decrease was mainly due to a higher level of more than 12 months category during the
capital expenditure, partially offset by a year. Based on the customers credential and
higher EBITDA generated during the year. past payment history, management is of the
view that the provision level is adequate as
Trade Receivables of 31 December 2015. We will continue to
The Groups accounts receivable balance due closely monitor the accounts receivable
from third parties increased by 8.7% to balance and ensure the level of provision is
HK$687.2 million as at 31 December 2015 appropriate and prudent.
from HK$631.9 million as at 31 December
2014. The outstanding balances in the Due from Related Parties
current to 90 days category increased by As at 31 December 2015, the amounts due
HK$51.7 million, following the higher sales in from GWH and WHM increased to HK$106.8
2015. Outstanding balances in the over 180 million from HK$88.6 million as at 31
days category increased by HK$39.6 million, December 2014 mainly due to slower
mainly due to slower repayment from certain payment from customers represented by
major customers. None of the accounts GWH and WHM during the year. The main
receivable was due from connected persons, bulk of the increase was in the 90 to 180 days
as defined under the Rules Governing the category and average balance due from
Listing of Securities on The Stock Exchange related parties outstanding days, on a time-
of Hong Kong Limited (the Listing Rules). weighted basis, increased to 81 days for the
Accounts receivable from GWH and WHM are current year from 75 days in the previous
disclosed separately and discussed below. year. We will continue to work closely with
GWH and WHM to expedite collection.
The Groups trading terms with its customers
are mainly on credit, except for new Prepayments, Deposits and Other
customers where payment in advance is Receivables
normally required. The credit period is The Groups total prepayments, deposits and
generally 90 days, extending up to 180 days other receivables as at 31 December 2015
for major customers. The Group maintains increased to HK$143.0 million from HK$115.5
control over its outstanding receivables. million as at 31 December 2014.
Overdue balances are reviewed regularly and
processes are in place to ensure balances are The balance as at 31 December 2015
collected. The accounts receivable relate to a included a receivable from Hainan White
large number of different customers. Horse, the non-controlling shareholder of
the WHA Joint Venture, amounting to
HK$95.4 million (31 December 2014: HK$66.5
million), which is unsecured, interest-free
and has no fixed terms of repayment.
The increase in prepayments, deposits and Assets and Liabilities

other receivables was mainly due to the As at 31 December 2015, the Groups total
increase of the receivable from Hainan White assets amounted to HK$3,634.8 million, a
Horse during the year for the cleaning and 6.2% decrease from HK$3,875.5 million, as at
maintenance expense subsidized as 31 December 2014. The Groups total
disclosed in the Expenses section on pages liabilities decreased to HK$832.3 million as at
16 and 17, partially offset by impact of the 31 December 2015, from HK$877.9 million as
depreciation of RMB against HK Dollars at 31 December 2014. Net assets as at 31
during the year. December 2015 decreased by 6.5% to
HK$2,802.4 million from HK$2,997.6 million
Long-term Prepayments, Deposits and as at 31 December 2014. This was mainly due
Other Receivables to the 2014 final and special dividends paid
The Groups total long-term prepayments, to the shareholders of the Group and the
deposits and other receivables as at 31 foreign exchange losses from translation of
December 2015 decreased to HK$88.8 million the Groups RMB operation in mainland
from HK$94.2 million as at 31 December China, partially offset by the retention of the
2014. net profit earned in the year ended 31
December 2015. Net current assets
The decrease in long-term prepayments, decreased from HK$1,114.5 million as at 31
deposits and other receivables was mainly December 2014, to HK$900.4 million as at 31
due to the settlement of certain long term December 2015.
deposit and the depreciation of RMB against
HK Dollars during the year. As at 31 December 2015, the Groups total
cash and bank balances amounted to
Other Payables and Accruals HK$689.3 million (31 December 2014:
The Groups total payables and accruals as at HK$1,049.6 million).
31 December 2015 were HK$645.7 million,
compared to HK$731.1 million as at 31 Share Capital and Shareholders Equity
December 2014. The lower payables and Total issued and fully paid share capital
accruals balances was mainly due to increased to HK$54.2 million as at 31
decrease in bus shelter rental and capital December 2015, from HK$53.7 million as at
expenditure related payables and the 31 December 2014. Total shareholders
depreciation of RMB against HK Dollars equity for the Group as at 31 December 2015
during the year. We consider it inappropriate decreased by 6.5%, to HK$2,802.4 million,
to give the turnover days against sales from HK$2,997.6 million as at 31 December
figures as the payable is more closely related 2014. The Groups reserves as at 31
to capital expenditure incurred for the December 2015 amounted to HK$2,633.5
acquisition of bus shelter concession rights.
million, a 8.0% decrease over the The majority of our operating assets are
corresponding balance of HK$2,862.5 million located in the PRC and are denominated in
as at 31 December 2014. This was mainly due RMB. The operating assets are translated to
to the 2014 final and special dividends paid Hong Kong Dollars at the 31 December 2015
to the shareholders of the Group and the spot rate. The spot rate of RMB as of 31
foreign exchange losses from translation of December 2015 has depreciated against the
the Groups RMB operation in mainland Hong Kong Dollars by 4.7% as compared with
China, partially offset by the retention of the the spot rate as at 31 December 2014. This
net profit earned in the year ended 31 has resulted in a decrease in the exchange
December 2015. The Group undertook no fluctuation reserve of approximately
share repurchases during the year. HK$138.5 million (2014: HK$73.4 million).
Exposure to Foreign Exchange Risk Liquidity, Financial Resources, Borrowing

The Groups only investment in China and Gearing
remains its operating vehicle, the WHA Joint The Group financed its operations and
Venture, which solely conducts business investment activities mainly with internally
within the PRC. WHA Joint Ventures generated cash flow.
operations, the bulk of its turnover, capital
investment and expenses are denominated As of 31 December 2015, the Groups total
in RMB. As at the date of this report, the cash and cash equivalents amounted to
Group has not experienced any difficulties in HK$689.3 million (HK$1,049.6 million as at 31
obtaining government approval for its December 2014). The Group had no short
necessary foreign exchange purchases. term or long-term debt outstanding as at 31
During the year under review, the Group did December 2015 (31 December 2014: Nil).
not issue any financial instruments for
hedging purposes. The Groups current policy is to maintain a
low level of gearing. This policy is reviewed
The average exchange rate of the RMB has on an annual basis. We plan to invest and
depreciated by 2.0% against the Hong Kong expand our bus shelter network, and explore
Dollar during the year as compared with last investment opportunities in complementary
year. The Groups turnover and costs are out-of-home platform with the aim to
largely denominated in RMB, which will increase return to shareholders.
largely offset each other. However, as the
Groups net profit is reported in Hong Kong Capital Expenditure
Dollars, the depreciation of RMB will have a For the year ended 31 December 2015, the
negative impact on the Groups net profit. Group invested HK$428.1 million in the
construction of bus shelters and acquisition
of concession rights, and HK$47.9 million on
fixed assets, compared to HK$454.7 million
and HK$10.8 million, respectively, in 2014.
Material Acquisitions and Disposals Contingent Liabilities

There were no other material acquisitions or During 2014, a supplier of the Group in China
disposals of any subsidiaries, associates or (the Supplier) factored its accounts
joint ventures of the Group during the year. receivable allegedly due from the Group (the
Accounts Receivable) under certain supply
Employment, Training and Development contracts (the Purported Supply Contracts)
As at 31 December 2015, the Group had a to certain financial institutions in China.
total of 585 employees, an increase of 3.2% Whilst the Purported Supply Contracts were
compared to 31 December 2014. Total wages allegedly entered into with a subsidiary of
and salaries decreased by 2.3% year-on-year the Company, the Group has confirmed that
mainly due to salary freeze and lower staff none of them is an authentic supply contract
bonus expenses. to which it is a party. When the Accounts
Receivable remained unpaid, the financial
As a matter of policy, employees are institutions commenced legal proceedings
remunerated based on their performance, against, among others, the Companys
experience and the prevailing industry subsidiary to recover an aggregate amount
practices, and compensation policies and of approximately RMB115 million. As of the
packages are reviewed on a regular basis. date of this report, the trial dates for these
Bonuses are linked to the performance of legal proceedings had yet to be fixed. As the
both the Group and the individual as Group confirmed that it had not entered into
recognition of value creation. Share options any of the Purported Supply Contracts, the
are also granted to senior management in an Group treated the Purported Supply
effort to align their individual interests with Contracts as being contractual fraud and
the Groups interests. Training courses and reported the cases to the competent police
conferences aimed at improving team authority. The directors, taking into account
members knowledge and skills were the advices from the Groups legal counsel,
organized throughout the year. believe that the Group has a valid defence in
law to the allegations against it and,
Charges on Group Assets accordingly, have not provided for any
potential claim arising from the litigation,
As at 31 December 2015, a bank balance of
other than the related legal and other costs.
RMB1.3 million (equivalent to approximately
HK$1.5 million) was frozen in respect of a
On 8 January 2016, the Group received a
legal claim discussed in the Contingent
notice from a certain District Court in the
Liabilities paragraph below.
PRC (the Court) stating that a plaintiff has
initiated legal action against the Supplier
Capital Commitments
and that the Court has ruled in such
As at 31 December 2015, the Group had plaintiffs favour and has frozen the
capital commitments contracted but not Suppliers right to receive payment from the
provided for in relation to the construction
of bus shelters amounting to HK$1.5 million
(31 December 2014: HK$0.6 million).
Group for the settlement of any outstanding Environmental Policies and Compliance
liability between the Supplier and the Group. We are committed to minimizing the impact
The Court has issued a compulsory order of our activities on the environment. To this
requiring the Group to remit an outstanding end, various impact assessments have been
sum of about RMB17.6 million owing by the undertaken and policies created which are in
Group to the Supplier into the bank account line with international best practices and
of the Court. The directors, taking into long term sustainability.
consideration the advice of the Groups legal
counsel, believe that this development will The core values of our environmental policy
not result in the Group being liable for are to meet all the environmental legislations
additional liability exceeding the that relates to our operations.
outstanding liability already taken up in the
account under other payables and accruals, In addition to full compliance with all laws
between the Supplier and the Group. relevant to sustaining and improving the
environment, we are committed to
FINANCIAL KEY PERFORMANCE deploying ecologically friendly construction
INDICATOR techniques, materials and operational
EBITDA as the financial key performance procedures.
indicator
EBITDA is the Groups earnings before The energy consumed by bus shelter panel
interest, tax, depreciation and amortization. accounts for almost 95% of the Groups
The Company uses the Groups EBITDA as the energy consumption. In order to reduce
financial key performance indicator. The electrical consumption of bus shelter panel
Companys aim is to increase the Groups while preserving illumination for public
EBITDA. We monitor the Groups EBITDA in safety, we have gradually reduced the
the current year or period and make number of fluorescent tubes usage and
comparison with that in the same period of increased in the use of LED lighting
the previous year as a measure of the structures. The LED lighting structures offer
performance. Details of the Groups EBITDA energy savings of more than 50% compared
are set out in the EBITDA section on page to the use of fluorescent tube. In addition to
17. using LED lighting structures on all new
shelters built in 2015, we have also
converted about 8% of our existing bus
shelter panels to LED lighting structures
792,909
708,857
662,317
during the year. As of 31 December 2015,

619,245
547,456
about 43% of our total bus shelter panels are

472,960
with LED lighting structures and we plan to

gradually increasing the ratio in the next few
years.
In addition, we have installed light

controllers and auto timers into many of the
10 11 12 13 14 15
lightbox structures which help to reduce
EBITDA (HK$000) electrical consumption.
KEY RELATIONSHIPS OUTLOOK

Relationships with Vendors The operating environment will remain
We have established relationships with over challenging. Management expects the
12 major suppliers for the construction and revenue performance from various
supply of bus shelters and other outdoor industries, that our advertising clients
media. Except for one vendor who has operate in, to be mixed in 2016. Our sales
allegedly engaged in certain fraudulent team will work towards leveraging on our
activities as set out in the Contingent display network to drive revenue forward.
Liabilities section on pages 22 and 23 and
was replaced with other third party suppliers We expect to maintain our capital
operating in similar industry, we have no expenditure budget for 2016 at a similar
major event affecting our relationships with scale to 2015 as we continue to identify
our suppliers. An annual internal evaluation, acquisition opportunities both in major cities
lead by our Engineering Department, is and new cities to extend the breath and
performed to measure the financial, depth of the reach of our network, taking
technical, quality and logistics performance advantage of the favorable asset price levels.
of these suppliers.
In addition, we continue to test new digital
Relationships with Employees opportunities in new cities.
During the year, we are not aware of any

In the long-run, Clear Media is optimistic
major event affecting our relationships with
about the prospects of the advertising sector
our employees.
in China on the back of a continuous increase
in domestic consumer spending.
Relationships with Customers
Our sales team interact closely with the
advertising clients marketing personnel and
their advertising agents during our daily
operation. In addition, our sales team also
put in efforts every year to identify new
advertising clients. During the year, our sales
team has increased the total number of
advertising clients from 784 in 2014 to 839 in
2015.
Biographies of Directors 25
JOSEPH TCHENG
Mr. Tcheng, aged 61, is currently the Chairman of Sichuan Swellfun Co. Ltd. (
), a premium baijiu company listed on the Shanghai Stock Exchange. Diageo has a
controlling stake in this company. Mr. Tcheng was the Managing Director of Diageo Greater
China from April 2009 to June 2013 where he was responsible for Diageos international spirits
brands such as Johnnie Walker, Smirnoff, Baileys and Guinness. During this time he established
the first Johnnie Walker House, an experience centre for Scotch in Shanghai and Beijing.
Chairman
Chairman of the Mr. Tcheng was the Managing Director of Diageo S.E. Asia from June 2007 to March 2009.
Nomination Prior to that, he has worked for 25 years in a variety of roles in general management and
Committee marketing with Philip Morris International in New York and Asia.
Chairman of the
Capital Expenditure
Committee Mr. Tcheng holds an MA in Economics from Downing College, Cambridge University. He
Chairman of the obtained the Financial Times Non-Executive Director Diploma in 2014.
Directors Securities
Dealing Committee
Executive Director Effective from 1 January 2016, Mr. Tcheng was appointed as an Executive Director, the
Chairman of the Board, the Chairman of the Nomination Committee, the Capital Expenditure
Committee, the Directors Securities Dealing Committee and a member of the Cash
Committee.
MARK THEWLIS*
Mr. Thewlis, aged 49, is currently the Executive Chairman of the Company. He was the
Regional President Asia Pacific for Clear Channel International Limited (CCI), a London-
based subsidiary of Clear Channel Outdoor Holdings, Inc. which is the controlling shareholder
of the Company and whose shares are listed on the New York Stock Exchange (CCO). Mr.
Thewlis managed the radio and outdoor advertising operations throughout the Asia Pacific
region for CCO. He is a consultant to CCI. Mr. Thewlis was a Senior Vice President
Operations of CCI, based in London, with responsibility for a number of business units
Executive Chairman
Chairman of the throughout Europe. During the period between October 2002 and June 2005, Mr. Thewlis
Nomination held the position of Director of Finance for CCI.
Committee
Chairman of the
Capital Expenditure Prior to joining CCO in 2002, Mr. Thewlis was the Chief Financial Officer for Adshel Street
Committee Furniture Pty Ltd in Australia, a joint venture between CCO and APN News & Media Limited.
Chairman of the
Mr. Thewlis was involved with the early development of the business, including business
Directors Securities
Dealing Committee development, capital expenditure management and establishment of third-party finance
Executive Director facilities.
Mr. Thewlis obtained his degree in accounting from the University of Canberra in 1990. He
then qualified as a Chartered Accountant in Australia and became a registered tax agent in
1994.
With effect from 1 January 2016, Mr. Mark Thewlis relinquished his positions as an executive
director, the Chairman of the Board, the Chairman of the Capital Expenditure Committee and
the Directors Securities Dealing Committee and a member of the Cash Committee; and Mr.
Joseph Tcheng was appointed as an executive director, the Chairman of the Board, the
Chairman of the Nomination Committee, the Capital Expenditure Committee, the Directors
Securities Dealing Committee and a member of the Cash Committee.
WILLIAM ECCLESHARE
Mr. Eccleshare, aged 60, is currently the Chief Executive Officer of Clear Channel Outdoor
Holdings, Inc. (CCO). Prior to his appointment by CCO effective from January 2012, Mr.
Eccleshare was the President and Chief Executive Officer of Clear Channel International (CCI),
a subsidiary of CCO. Before his appointment by CCI effective from September 2009, Mr.
Eccleshare was Chairman and CEO of BBDO Europe, one of the worlds leading marketing
communications agencies, where he was responsible for all BBDO advertising, direct
marketing, digital, and public relations agencies. Prior to that position, Mr. Eccleshare was
Deputy Chairman
Non-Executive Director Chairman and CEO of Young & Rubicam EMEA. Throughout his career, he also held senior
executive roles at McKinsey & Company, where he was Partner, European Branding Practice;
Ammirati Puris Lintas, as Chairman and CEO EMEA; and J Walter Thomson, where he held
various senior titles. Mr. Eccleshare is a Board member and trustee of the Donmar Warehouse
Theatre in London.
Mr. Eccleshare holds an M.A. in history from Trinity College Cambridge.
PETER COSGROVE
Mr. Cosgrove, aged 62, has been a Director of the Company since 2001 and has over 25 years
experience in the outdoor, publishing and broadcasting industries. He is currently Chairman
of APN News & Media Limited, a diversified media operator in Australia and New Zealand
which is listed on both the Australian Securities Exchange and the New Zealand Exchange and
Chairman of Buspak Advertising (Hong Kong) Limited.
Deputy Chairman Mr. Cosgrove has been a Director of APN News & Media Limited since December 2003 and he
Chairman of the Cash was appointed as the Chairman of the Board in February 2013.
Committee
Non-Executive Director
HAN ZI JING
Mr. Han, aged 60, has been with the Group since 1998. Before that, he was General Manager
of Guangdong White Horse Group Corporation, a diversified company with interests ranging
from property to medical equipment. Mr. Han was also Director of the Hong Kong Overseas
Representative Office of China Science and Technology Association, a liaison body between
the PRC Government and the international science and technology communities. Mr. Han has
a Bachelors degree and graduated from a postgraduate course at the South China Normal
University. He is a brother of Mr. Han Zi Dian.
Chief Executive Officer
Executive Director
TEO HONG KIONG

Mr. Teo, aged 51, joined the Group in 1999 from PricewaterhouseCoopers. He worked in
both the Singapore and Beijing offices of PricewaterhouseCoopers where he held senior
positions. He graduated from the National University of Singapore and is a Chartered
Accountant of Singapore.
Chief Financial Officer

Executive Director
ZHANG HUAI JUN

Zhang Huai Jun (Harrison), aged 45, was appointed as Chief Operating Officer of the Company
in November 2007. Mr. Zhang joined Hainan White Horse Advertising Media Investment Co.,
Ltd. in July 2000. He was appointed as National Sales Director from September 2002 to October
2007 and Sales General Manager of Northern Sales Center from July 2000 to August 2002.
Before joining the Company, Mr. Zhang worked for Procter & Gamble (China) as Brand
Manager in its marketing department from 1996-2000. Mr. Zhang has extensive experience of
Chief Operating Officer marketing, sales and media.
Executive Director
Mr. Zhang graduated from Guanghua School of Management, Peking University in 1996 with
a Bachelor degree in Economics.
JONATHAN ZHU
Mr. Zhu, aged 53, is a Managing Director of Bain Capital, based in Hong Kong. Since joining
Bain Capital in 2006, Mr. Zhu has led Bain Capitals investments in China. Mr Zhu is currently a
non-executive director of Greatview Aseptic Packaging Company Limited and Sunac China
Holdings Limited, the shares of which are listed on the Stock Exchange of Hong Kong. Mr Zhu
is also an independent director of Youku Tudou Inc., the shares of which are listed on the New
York Stock Exchange. Before joining Bain Capital in 2006, he was the China Chief Executive
Officer of Morgan Stanley. Mr. Zhu holds a juris doctor degree from Cornell Law School, an MA
degree from Nanjing University, and a BA degree from Zhengzhou University. Mr Zhu is also a
trustee of The Nanjing University.
Mr. Zhu has been a non-executive director since August 2011.

CORMAC OSHEA
Mr. OShea, aged 43, graduated from University College Cork with a bachelors degree in
Commerce (majoring in finance). Mr. OShea is currently the chief financial officer of the
international division of Clear Channel Outdoor Holdings, Inc. (Clear Channel Outdoor). He
was the chief financial officer of each of Australian Radio Network Pty Ltd from October 2010
to April 2013 and APN Outdoor Pty Ltd from April 2006 to October 2010 before he joined Clear
Channel Outdoor in April 2013. Prior to the abovementioned positions, Mr. OShea held the
positions of group corporate finance manager and group accountant of APN News & Media
Ltd.. Mr. OShea also spent four years with KPMG in Ireland where he qualified as a chartered
accountant. Mr. OShea is also a fellow of the Institute of Chartered Accountants in Ireland.
DESMOND MURRAY
Mr. Murray, aged 60, is a qualified accountant and a member of the Hong Kong Institute of
Certified Public Accountants. Since June 2011, he has been appointed as an Independent
Non-Executive Director of Sun Art Retain Group Limited which is listed on the Main Board of
the Hong Kong Stock Exchange. He was an audit partner in PricewaterhouseCoopers Hong
Kong from 1987 through 2000. Since withdrawing from practice with
PricewaterhouseCoopers, Mr. Murray has taken on a number of non-executive directorships
and acts as a business consultant to a number of smaller businesses. While working with
Chairman of the Audit
Committee PricewaterhouseCoopers, he advised boards and audit committees of companies listed in
Chairman of the Hong Kong, China, and throughout the region, both as an audit partner and as an advisor in
Remuneration relation to both internal audit and corporate governance.
Committee
Independent Non-
Executive Director Mr. Murray has been a Director of the Company since 2003.
On 3 February 2016, Mr. Desmond Murray tendered his resignations, as an independent non-
executive director, the Chairman of the Audit Committee and the Remuneration Committee;
and a member of the Nomination Committee, to be effective on a date as mutually agreed
between the Company and Mr. Murray, but in any event on a date no later than 31 August
2016, to pursue his personal interests.
WANG SHOU ZHI

Mr. Wang, aged 69, has over 25 years in researching design theories and history since 1982,
and has been a professor of design theories in the Department of Liberal Arts & Sciences in
Art Center College of Design in Pasadena, California since 1988. He is the Dean of Cheung
Kong School of Art and Design, Shantou University since December 2011, and prior to that he
was the Vice Dean. Mr. Wang has been the Chief Consultant of the Academic Orientation
Committee of Tsinghua (Qinhua) University since 2003, and an honor professor at the Central
Independent Non- Academy of Fine Art, Shanghai University, Nanjing Polytechnic University and some twenty
Executive Director other universities in China. He is also a lecturer at the Southern California Institute of
Architecture, California Institute of the Arts, Otis Institute of Art & Design, and the University
of Southern California. Mr. Wang has acted as Chief Advisor to Chinas Industrial Design
Association, National Advertising Association, National Interior Design Association, and the
National Graphic Design Association. He obtained his postgraduate degree from the Graduate
School of Wuhan University.
Mr. Wang has been a Director of the Company since 2001.

LEONIE KI SBS, JP
Ms. Ki, aged 68, has over 30 years of experience in integrated communication and marketing
services. She was the founder, partner, chairman and chief executive officer of Grey Hong
Kong Advertising Limited and Grey China Advertising Limited. Ms. Ki is currently an executive
director of New World Development Company Limited and an independent non-executive
director of Sa Sa International Holdings Limited, both of which are listed on the Hong Kong
Stock Exchange. Ms. Ki is committed to community and public services. She is currently the
director of Chow Tai Fook Charity Foundation and New World Group Charity Foundation Limited,
Independent Non-
Executive Director a life member of the Childrens Cancer Foundation, vice chairman of UNICEF Hong Kong
Committee, trustee member of the Ocean Park Conservation Foundation and the honorary
secretary of the Wu Zhi Qiao Charitable Foundation.
Ms. Ki also serves as a member on a number of institutes, including the Hong Kong Housing
Society, the Asian Advisory Board of Cheng Yu Tung Management Institute, Richard Ivey
School of Business (University of Western Ontario, Canada), the Chinese University of Hong
Kong and the University of Hong Kong. In addition, Ms. Ki is also a member of The Twelfth
Chinese Peoples Political Consultative Conference of The Peoples Republic of China and a
member of The Chinese Peoples Political Consultative Conference of Yunnan Province. Ms. Ki
received the Silver Bauhinia Star from the HKSAR Government in 2007.
Ms. Ki has been a Director of the Company since 2004.
THOMAS MANNING
Mr. Manning, aged 60, is currently a Lecturer in Law at the University of Chicago Law School
and a corporate board director, and until 2012, he was the Chief Executive Officer of several
companies in Asia. He has been an independent non-executive director of CommScope
Holding Company, Inc., a telecommunication technology manufacturer and Nasdaq-listed
company, since November 2014, and an independent non-executive director of Dun &
Bradstreet, a business information company whose shares are also listed on the NYSE, since
Independent Non- June 2013. Mr. Manning is also an advisor to The Demand Institute, a joint venture between
Executive Director the Conference Board and the Nielsen Company, an affiliated partner of Waterstone
Management Group, and Co-Chairman of the Chicago Philharmonic. He was formerly an
independent nonexecutive director of iSoftStone Information Technology (Group) Co. Ltd.,
Gome Electrical Appliances Holding Limited, Bank of Communications Co., Ltd., and Asia-Info
Linkage Holdings, Inc.
In his past executive roles, Mr. Manning was the Chief Executive Officer of Cerberus Asia
Operations & Advisory Limited, Indachin Limited, Capgemini Asia Pacific, and Ernst & Young
Consulting Asia Pacific. He was the Chairman of China Board Directors Limited; a senior
partner of Bain & Company, where he was a member of Bains China Board and head of Bains
information technology strategy practice in Silicon Valley and Asia; and also served as a
Global Managing Director of the Strategy & Technology Business of Capgemini.
Earlier in his career, Mr. Manning was with McKinsey & Company, where he developed a
corporate strategy practice for medical industry clients. He also founded a telemedicine
company, Buddy Systems. Mr. Manning, who speaks Mandarin, received a bachelors degree
in East Asian Studies from Harvard University and an M.B.A. from Graduate School of Business
of Stanford University.
Mr. Manning has been a Director of the Company since October 2012.
Corporate Governance Report 31
Clear Media is committed to ensuring high standards of corporate governance at all times and in all areas of its
operations. The board of directors of the Company (the Board or the Board of Directors) believes that good
corporate governance is an essential element in enhancing the confidence of current and potential shareholders,
investors, employees, business partners and the community as a whole.
CORPORATE GOVERNANCE
The Group is committed to achieving high standards of corporate governance which we believe are crucial to the
development of the Group and to the safeguarding of the interests of our shareholders.
The Audit Committee comprises four non-executive Directors, three of whom are independent. The Audit Committee
has reviewed the accounting principles and practices adopted by the Group and has also discussed the year end
closing and internal audit process, internal control and financial reporting matters for the year ended 31 December
2015 with management, the internal auditor and the external auditor. The Audit Committee has also reviewed the
annual results for the year ended 31 December 2015.
The Company has adopted the terms of the Model Code for Securities Transactions by Directors of Listed Issuers (the
Model Code) as set out in Appendix 10 to the Listing Rules.
During the period from 1 January 2015 to 31 December 2015, the Company has adopted the code provisions set out in
the Corporate Governance Code and Corporate Governance Report as set out in Appendix 14 to the Listing Rules.
In the opinion of the Board, the Company has complied with the code provisions set out in the Corporate Governance
Code and Corporate Governance Report set out in Appendix 14 to the Listing Rules during the year ended 31
December 2015. Upon specific enquiry with all Directors, the Board is not aware of any non-compliance with the
Model Code throughout the fiscal year ended 31 December 2015.
THE BOARD
Member attendance of Board, Committee and Annual General Meetings during 2015:
Number of meetings attended and held

Capital Independent Annual
Board Audit Remuneration Nomination Expenditure Board Cash General
Meetings Committee Committee Committee Committee Committee Committee Meeting
EXECUTIVE DIRECTORS
Mr. Mark Thewlis (Executive Chairman)* 5/5 1/1 4/4 2/2 1/1
Mr. Han Zi Jing (Chief Executive Officer) 4/5
Mr. Teo Hong Kiong (Chief Financial Officer) 5/5 4/4 1/1
Mr. Zhang Huai Jun (Chief Operating Officer) 3/5 3/4 2/2
NON-EXECUTIVE DIRECTORS
Mr. William Eccleshare 5/5 4/4 2/2
Mr. Peter Cosgrove 4/5 3/4 3/4 2/3 2/2 1/1
Mr. Zhu Jia 3/5 2/3
Mr. Cormac OShea 5/5 4/4
ALTERNATE DIRECTOR
Mr. Zou Nan Feng 0/5
INDEPENDENT NON-EXECUTIVE DIRECTORS

Mr. Desmond Murray** 5/5 4/4 4/4 3/3 1/1 1/1
Mr. Wang Shou Zhi 4/5 3/4 3/4 2/3 1/1
Ms. Leonie Ki Man Fung 5/5 3/4 4/4 3/3 1/1
Mr. Thomas Manning 5/5 2/3 1/1
* With effect from 1 January 2016, Mr. Mark Thewlis relinquished his positions as an executive director, the Chairman of the Board, the Chairman
of the Capital Expenditure Committee and the Directors Securities Dealing Committee and a member of the Cash Committee; and Mr. Joseph
Tcheng was appointed as an executive director, the Chairman of the Board, the Chairman of the Nomination Committee, the Capital Expenditure
Committee, the Directors Securities Dealing Committee and a member of the Cash Committee.
** On 3 February 2016, Mr. Desmond Murray tendered his resignations, as an independent non-executive director, the Chairman of the Audit
Committee and the Remuneration Committee; and a member of the Nomination Committee, to be effective on a date as mutually agreed
between the Company and Mr. Murray, but in any event on a date no later than 31 August 2016, to pursue his personal interests.
Since the Directors Securities Dealing Committee was established with the principal function of handling the
notification and clearance of our directors dealing in our Companys securities pursuant to Appendix 10 (Model Code
for Securities Transactions by Directors of Listed Issuers) to the Listing Rules, regular committee meetings are not
considered necessary for its principal function. There were no Directors Securities Dealing Committee meeting during
the year.
As of the date of this report, the Board comprises 12 members. There are four executive directors, including the
Chairman, the Chief Executive Officer (the CEO), the Chief Financial Officer and the Chief Operating Officer; four non-
executive directors and four independent non-executive directors. Throughout the year ended 31 December 2015,
one-third of the Board was represented by independent non-executive directors. Detailed biographies outlining each
directors range of specialist experience and suitability for the successful long-term management of the Group can be
found on pages 25 to 29.
CHAIRMAN AND CEO

The Group insists on a clear division of responsibilities among its top management. To this end, the Group adopts a
dual leadership structure in which the role of the Chairman is kept separate from that of the CEO. The Board is
responsible for the overall direction and strategy of the Company while the CEO and the senior management are
responsible for the day-to-day management of the Groups businesses.
The Group believes that the Board of Directors comprises a good mix of local and overseas advertising and
promotional experts, financial and business consultants, and other diversified industry experts, and that they actively
bring their valuable experience to the Board for promoting the best interests of the Company and its shareholders.
The Board also believes that such a group is ideally qualified to advise the management team on future strategy
development, finance, and other statutory requirements, and to act as guardians of shareholders interests.
Each director is requested to disclose to the Company the number and nature of offices held in public companies or
organisations and any other significant commitments annually. The Board evaluates the independence of all
independent non- executive directors on an annual basis and has received written confirmation from each
independent non-executive director regarding his/her independence. As at the date of this report, the Board considers
all independent non-executive directors to be in full compliance with the independence guidelines as laid down in
the Listing Rules.
During the year ended 31 December 2015, the Board maintained the directors and officers liability insurance for all
directors and officers of the Company against any legal liability arising from the performance of their duties.
BOARD PROCEEDINGS
The Board meets at least four times each year at approximately quarterly intervals to discuss the Groups overall
strategy, operations and financial performance. The Chairman also at least annually holds meetings with the non-
executive directors (including the independent non-executive directors) without other executive directors present.
The Board also ensures that its members are supplied with monthly update on the necessary information in a form
and of a quality appropriate to enable the Board to discharge its duties. All Board meetings adhere to a formal agenda
in which a schedule of matters is specifically addressed to the Board for its decision. Specific topics discussed at these
quarterly Board meetings include overall strategy, major acquisitions and disposals, annual budgets, interim and
annual results, recommendations on directors appointment(s) or reappointment(s), approval of major capital projects,
dividend policies, and other significant operational and financial matters. All quarterly Board meetings are scheduled
one year in advance in order to ensure maximum attendance by the directors. All Board members have access to the
advice and services of the Groups company secretary. If necessary, directors also have recourse to external
professional advice at the Groups expense. During the intervals between Board meetings, individual directors are
kept appraised of all major changes that may affect the Groups businesses.
The minutes of Board meetings are prepared by the Groups company secretary with details of the matters considered
by the Board and the decisions reached, including any concerns raised by directors or dissenting views expressed. The
draft minutes are circulated to all directors for their comments within a reasonable time after the meeting, and the
final minutes are adopted in the next meeting. Some Board decisions are made via written resolutions authorised by
all directors. However, the Board acknowledges that if a substantial shareholder or a director has a conflict of interest
in a matter to be considered by the Board which the Board has determined to be material, the matter shall be dealt
with by a physical board meeting rather than a written resolution. Independent non-executive directors who, and
whose close associates, have no material interest in the transaction should be present at that board meeting. Minutes
of the Board meetings are maintained by the company secretary and available for inspection by all directors at the
Companys registered office.
APPOINTMENT, RE-ELECTION AND REMOVAL OF DIRECTORS

Shareholders of the Company in general meeting, or the Board upon recommendation of the Nomination Committee
of the Company, can appoint any person as a director of the Company at any time. Directors who are appointed by the
Board must retire at the first annual general meeting after their appointments, but they are eligible for re-election at
that general meeting, and such election is separate from the normal retirement of directors by rotation. In accordance
with the Groups Bye-laws and related Board resolutions, one-third of the Board members who have served the
longest on the Board, including the Chairman and the CEO, are required to retire by rotation at each Annual General
Meeting. Directors are eligible for re-election at the same Annual General Meeting. All non-executive directors are
appointed for a fixed term of three years and are subject to retirement by rotation and re-election at least once every
three years. The Company has maintained on its website and on the Hong Kong Stock Exchange website an updated
list of its directors identifying their role and function and whether they are independent non-executive directors.
All newly appointed directors are briefed by the Companys lawyers about their duties and obligations as a director of
a listed company. Newly appointed directors are also encouraged to discuss with the Chairman on any additional
information or training they feel they require to discharge their duties more effectively.
ROLES OF THE BOARD

The Board decides on corporate strategies, approves overall business plans, and supervises the Groups financial
performance, management and organisation on behalf of the shareholders. Specific tasks that the Board delegates to
the Groups management include preparing annual and interim accounts for the Boards approval, implementing
strategies approved by the Board, monitoring the operating budgets, implementing internal control procedures, and
ensuring compliance with relevant statutory requirements and other rules and regulations.
DIRECTORS TRAINING
The Company provides monthly updates to the directors relating to the Groups business.
During the year, the company secretary provided directors with updates on latest development and changes in the
Listing Rules and the regulatory environment. All directors have confirmed that such updates were reviewed by them.
All directors have provided written records of the training they received during 2015 to the Company.
BOARD COMMITTEES
The Board has established six Committees to oversee particular aspects of the Groups affairs. The main roles and
responsibilities of the Audit, Remuneration and Nomination Committees, including the authority delegated to them
by the Board, are published on the Groups website at www.clear-media.net. The independent views of the different
Committees and their recommendations not only ensure proper control of the Group but also the continual
achievement of the high corporate governance standards expected of a listed company. Except for the Directors
Securities Dealing Committee of which regular meetings are not considered necessary for its principal function, the
chairman of each Committee reports the outcome of the Committees meetings to the Board for further discussion
and approval.
BOARD OF DIRECTORS
Directors
Capital
Audit Remuneration Nomination Cash Securities
Expenditure
Committee Committee Committee Committee Dealing
Committee
Committee
AUDIT COMMITTEE
The responsibilities and authorities of the Audit Committee are set out in the terms of reference a copy of which is
published on the Hong Kong Stock Exchanges and the Groups websites. The Committee consists of four non-
executive directors, with the majority of them being independent non-executive directors. The Audit Committee is
chaired by an independent non- executive director, Mr. Desmond Murray, a retired audit partner from
PricewaterhouseCoopers (Hong Kong), who possesses extensive experience in, and knowledge of, finance and
accounting. All members of this Committee have the relevant industry and financial experience necessary to advise on
Board strategies and other related matters. None of the Committee members is a partner or former partner of Ernst &
Young, the Companys external auditors. The Chief Financial Officer, the Groups company secretary, the internal
auditor, and representatives of the external auditors of the Company are expected to attend meetings of the
Committee.
MEMBERS OF THE AUDIT COMMITTEE

Desmond Murray, Independent Non-Executive Director (Chairman)*
Peter Cosgrove, Non-Executive Director
Wang Shou Zhi, Independent Non-Executive Director
Leonie Ki Man Fung, Independent Non-Executive Director
* On 3 February 2016, Mr. Desmond Murray tendered his resignations, as an independent non-executive director, the Chairman of the Audit
The Audit Committee met four times in 2015 to review the internal auditors review work on bus shelter inspections,
digital panels, sales department function and internal control on cash management. It also discussed the interim
review plan, audit work plan, interim review report and the audit consolidated financial statements with the external
auditors of the Company. The key findings and the related recommendations arising from this work were reported to
the Board. The meetings of the Audit Committee are attended by members of the Committee, the company secretary
and, when necessary, the external auditors and internal auditors. At the discretion of the Committee, other people
may also be invited to the meetings.
MEMBERS OF THE AUDIT COMMITTEE (continued)

Apart from considering the issues arising from the audit process, the Audit Committee also discusses matters raised
by the external auditors. In 2015, the external auditors made presentations to the Audit Committee on the
implications of the introduction of new accounting standards in Hong Kong. The Audit Committee also regularly
reviews the effectiveness of the Companys financial controls, internal control systems, and risk management system.
The Audit Committee reviews and approves the annual internal audit plan on a risk-assessment basis and assesses
whether they are in line with the Groups business risks. The Audit Committee subsequently reports any findings and
recommendations to the Board for review and approval. All issues reported by the internal auditors are monitored
closely by the Groups senior management until such time as appropriate measures can be taken to address and
resolve the issues in question. The Chairman of the Audit Committee summarises the activities of the Audit Committee
and highlights issues arising therefrom to the Board after each Audit Committee meeting.
The Audit Committee is also entrusted with monitoring and assessing the independence and objectivity of the
external auditors and the effectiveness of the audit process. All external audit partners are subject to periodic rotation
and the ratio of annual fees for non-audit services to those for audit services is subject to close scrutiny by the Audit
Committee.
During the year under review, the fees paid to the Groups external auditors Ernst & Young were as follows:
2015 2014
HK$000 HK$000
Audit fees 2,902 2,704

Non-audit fees 380 341
The Audit Committee has concluded that it is satisfied with the findings of its review of the audit and non-audit
service fees, process and effectiveness, and independence and objectivity of Ernst & Young. The Audit Committee will
therefore recommend to the Board that Ernst & Young be re-appointed as the Groups external auditors at the Annual
General Meeting in 2016.
REMUNERATION COMMITTEE
The responsibilities and authorities of the Remuneration Committee are set out in the terms of reference a copy of
which are published on the Hong Kong Stock Exchanges and the Groups websites. The Committee has adopted the
model where it performs an advisory role to the Board, with the Board retaining the final authority to approve
executive directors and senior managements remuneration. The Remuneration Committee currently has five non-
executive directors, with a majority of them being independent non-executive directors.
The Remuneration Committee met four times in 2015 to review the remuneration structure and policy, and the bonus
for the executive directors and made the related recommendation to the Board.
MEMBERS OF THE REMUNERATION COMMITTEE

Desmond Murray, Independent Non-Executive Director (Chairman)*
William Eccleshare, Non-Executive Director
* On 3 February 2016, Mr. Desmond Murray tendered his resignations, as an independent non-executive director, the Chairman of the Audit
REMUNERATION POLICY
The primary objective of the Groups remuneration policy is to retain and motivate executive directors by linking their
compensation to the Groups performance and evaluating their compensation against corporate goals, so that the
interests of the executive directors and the senior management team are aligned with those of our shareholders. No
director can, however, approve his or her own remuneration.
EXECUTIVE DIRECTORS REMUNERATION: BASIC SALARY

The Remuneration Committee annually reviews the basic salary of all executive directors of the Group. When
considered necessary, the Remuneration Committee also reviews the bonus amounts and bonus schemes for the
executive directors. Details of each executive directors salary and bonus are in Notes to Financial Statements on
pages 91 to 92.
SHARE OPTIONS
The Remuneration Committee may from time to time recommend grants of share options under the Groups approved
share options scheme for executive directors. Such share options are granted based on each employees performance
and the achievement of certain goals that are consistent with the Groups objective of maximising long-term value for
its shareholders. Details of the share options granted to executive directors and the management team to date are
published on pages 57 to 60 of the Report of the Directors.
NON-EXECUTIVE DIRECTORS REMUNERATION

All fees paid to non-executive directors for their services to the Group are subject to annual review by the
Remuneration Committee. The Group also offers its non-executive directors reimbursement of invoices for out-of-
pocket expenses incurred by them while discharging their duties as directors, such as attending meetings on behalf of
the Group. Full details of all such fees paid to non-executive directors during 2015 can be found on pages 91 to 93 of
the Notes to Financial Statements. The non-executive directors, together with the other directors of the Company,
are subject to retirement by rotation and re- election in accordance with the Companys Bye-laws at each annual
general meeting.
NOMINATION COMMITTEE
The responsibilities and authorities of the Nomination Committee are set out in the terms of reference a copy of which
are published on the Hong Kong Stock Exchanges and the Groups websites. The Nomination Committee reports to
the Board and makes recommendations regarding the appointment of directors, its evaluation of the Boards
composition (in which board diversity would be considered from a number of aspects, including but not limited to
gender, age, cultural and education background, ethnicity, professional experience, skills, knowledge and length of
services), and the management of Board succession with references endorsed by the Board itself. The Nomination
Committee currently has one executive director and six non-executive directors, with the majority of them being
independent non-executive directors.
MEMBERS OF THE NOMINATION COMMITTEE

Desmond Murray, Independent Non-Executive Director (Chairman)*,**
William Eccleshare, Non-Executive Director
Zhu Jia, Non-Executive Director*
Thomas Manning, Independent Non-Executive Director
* With effect from 1 January 2016, Mr. Desmond Murray relinquished his position as the Chairman but remained as a member, Mr. Zhu Jia
relinquished his position as a member; and Mr. Joseph Tcheng was appointed as the new Chairman of the Nomination Committee.
** On 3 February 2016, Mr. Desmond Murray tendered his resignations, as an independent non-executive director, the Chairman of the Audit
The Board also approved the adoption of the board diversity policy. Such policy aims to achieve diversity on the Board
in the broadest sense in order to have a balance of skills, experience and diversity of perspectives appropriate to the
business nature of the Company. Under such policy, selection of candidates on the Board is based on a range of
diversity perspectives, including but not limited to gender, age, cultural and education background, ethnicity,
professional experience, skills, knowledge and length of service.
Hence, the Nomination Committee adopts certain criteria and procedures in the nomination of new directors with due
regard for the benefits of diversity on the Board that would complement the existing Board. The criteria include a
candidates professional background, especially advertising, financial and commercial experience, and track record
with other listed companies. The Nomination Committee also considers information on candidates available from
various sources, including the database of the Institute of Directors in Hong Kong, as well as recommendations from
the management team and other knowledgeable individuals. Candidates who satisfy all of the relevant criteria are
then short-listed by the Chairman and the Secretary of the Nomination Committee before their nominations are
proposed to the Nomination Committee. The Nomination Committee subsequently meets to select the final candidate
and submit its recommendation to the Board for approval.
The Nomination Committee met three times in 2015 to review the structure, size and composition of the Board,
directors service contracts, the appointment of a new executive director and the election/re-election of directors; and
made the related recommendation to the Board.
CAPITAL EXPENDITURE COMMITTEE

The Capital Expenditure Committee is in charge of reviewing and recommending new projects involving capital
expenditures greater than HK$10,000,000 to the Board for its approval in order to ensure more efficient usage of the
Groups capital resources. The members of this Committee include the Groups Chairman, the Chief Financial Officer,
the Chief Operating Officer and one non-executive director with relevant international operational experience.
MEMBERS OF THE CAPITAL EXPENDITURE COMMITTEE

Mark Thewlis, Executive Chairman, Executive Director (Chairman)*
Teo Hong Kiong, Chief Financial Officer, Executive Director
Zhang Huai Jun, Chief Operating Officer, Executive Director
Cormac OShea, Non-Executive Director
* With effect from 1 January 2016, Mr. Mark Thewlis relinquished his position as the Chairman and Mr. Joseph Tcheng was appointed as the new
Chairman of the Capital Expenditure Committee.
The Capital Expenditure Committee met four times in 2015 to review the Groups strategic development, the capital
expenditure budget, the refurbishment needs, the renewal of certain bus shelter concession rights, the acquisitions
and construction of bus shelters and the addition of digital displays; and made the related recommendation to the
Board.
CASH COMMITTEE
The Cash Committee was established, with the main roles and responsibilities clearly defined in its terms of reference,
for reviewing the adequacy of and the options for utilization of the Groups cash on hand with a view to enhance
shareholders interests, and making related recommendations to the Board. The options to be considered by the Cash
Committee, from time to time, include, but not limited to, the following:
i) significant capital investment for the organic expansion of the Groups businesses;
ii) significant mergers and acquisitions;
iii) recommendation for various forms of dividends;
iv) share repurchase by the Company; and
v) repayment of any significant borrowing, if any.
The members of this Committee include a non-executive director, the Groups Chairman and the Chief Operating
Officer.
MEMBERS OF THE CASH COMMITTEE

Peter Cosgrove, Non-Executive Director (Chairman)
Mark Thewlis, Executive Chairman, Executive Director*
Zhang Huai Jun, Chief Operating Officer, Executive Director
* With effect from 1 January 2016, Mr. Mark Thewlis relinquished his position as a member and Mr. Joseph Tcheng was appointed as a new
member.
The Cash Committee met two times in 2015 to review the adequacy of and various options for utilization of the
Groups cash on hand and made the related recommendation to the Board.
DIRECTORS SECURITIES DEALING COMMITTEE

The Directors Securities Dealing Committee was established with the main roles and responsibilities clearly defined in
its terms of reference and the principal function for handling the notification and clearance of directors dealing in the
Companys securities pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers as set out
under Appendix 10 to the Listing Rules. The members of this Committee include the Chairman of our Board, the Chief
Financial Officer and a non-executive director.
MEMBERS OF THE DIRECTORS SECURITIES DEALING COMMITTEE

Mark Thewlis, Executive Chairman, Executive Director (Chairman)*
Teo Hong Kiong, Chief Financial Officer, Executive Director
Zhu Jia, Non-Executive Director
* With effect from 1 January 2016, Mr. Mark Thewlis relinquished his position as the Chairman and Mr. Joseph Tcheng was appointed as the new
Chairman of the Directors Securities Dealing Committee.
Given the nature of the Committees principal function, regular meetings are not considered necessary and there was
no Committee meeting during the year.
During the year, the Committee received 16 notification letters from three executive directors and one alternate
director; and the corresponding clearance letters were issued pursuant to Appendix 10 to the Listing Rules.
INTERNAL CONTROL, INTERNAL AUDIT AND FINANCIAL REPORTING

The Board is entrusted with the overall responsibility for establishing and maintaining the Groups internal control
systems and reviewing their effectiveness. The role of the Groups management is to implement all Board policies on
risk and control.
The Groups internal control systems are designed to provide reasonable protection of the Groups assets, and to
safeguard these assets against unauthorised use or disposition by ensuring that all such transactions are executed in
accordance with managements authorisation. The systems also ensure that accounting records are sufficiently
accurate for the preparation of financial information used for operational and reporting purposes. The Group has
adopted comprehensive procedures with duly assigned levels of authority in areas of financial, operational and
compliance controls, and risk management to ensure that its assets and resources remain secure at all times.
The role of the Audit Committee is, through discussion with management and other consultants, and the use of the
internal audit function, to review the effectiveness of the internal control systems, including financial, operational and
compliance controls, and risk management functions, and to report to the Board any significant risks and issues.
In 2010, the Board approved a 3-year rotational internal audit plan covering several different departments. The
objective of this plan is to reduce potential risks and improve operational efficiency. This policy has been refreshed
every 3 years and the 3-year internal audit plan is renewed and reviewed on an annual basis. The Group subsequently
outsourced the completion of this work to a qualified consultant. The Groups internal auditors report their findings
and make their recommendations directly to the Audit Committee on a regular basis and have the right to consult the
Audit Committee without first referring to the management. The Audit Committee reports the progress of the work
plan and related findings to the Board at each meeting during the year.
INTERNAL CONTROL, INTERNAL AUDIT AND FINANCIAL REPORTING (continued)

The Company effectively became a subsidiary of Clear Channel Outdoor Holdings, Inc. (CCO) in 2005, resulting in the
consolidation of the Group in CCOs financial results. CCO is listed on the New York Stock Exchange and is subject to
certain rules in accounting, disclosure and internal control procedures, including the rules set out in the Sarbanes-
Oxley Act (SOX). The Group conducted a review regarding its compliance with the requirements under the SOX in
2011, 2012, 2013, 2014 and 2015 by its internal auditors and external auditors, and we are pleased to report that the
Group is in compliance with the rules and requirements stipulated in SOX.
The directors acknowledged their responsibility for preparation of financial statements which give a true and fair view
of the Groups state of affairs of the results and cash flow for the year. Directors are not aware of any material
uncertainties relating to events or conditions that may cast significant doubt upon the Companys ability to continue
as a going concern.
The Independent Auditors Report on pages 63 to 64 of this annual report has set out the responsibilities of Ernst &
Young, the external auditors of the Company.
CODE OF CONDUCT AND BUSINESS ETHICS

The directors of the Group have a duty and responsibility to act honestly and with due diligence and care when
carrying out their duties on behalf of the Group. During 2012, all directors were provided with the latest version of the
Guidance on the Disclosure of Price Sensitive Information published by Hong Kong Exchanges and Clearing Limited,
the Guidelines for Directors published by the Hong Kong Institute of Directors and the Guidelines on Disclosure of
Inside Information published by the Securities and Futures Commission. During 2013, the Company arranged and
funded a formal training session on the new inside information disclosure regime and the related changes to the
Listing Rules. During 2014, the Company updated the directors on the effect of the amendments to the Listing Rules
and arranged and funded a formal training session on connected transactions, fair and equal treatment to
shareholders and directors fiduciary duties. During 2015, the Company updated the directors on the effect of the
amendments to the Listing Rules.
The Group is committed to ethical business conduct and compliance with underlying Bribery and Corruption Laws.
The Group has adopted a Code of Business Conduct and Ethics and the Anti-Corruption Compliance Policy and
Procedures which apply to all of the Groups employees. With the help from a law firm, the Group typically arranges
professional training for its employees on the Code of Business Conduct and Ethics and the Anti-Corruption
Compliance Policy and Procedures at least annually. The written material of such professional training can readily be
accessed by any employee at the Companys corporate website. During the year ended 31 December 2015, the Board
reviewed the Groups compliance with the Code of Business Conducts and Ethics and the Anti-Corruption Compliance
Policy and Procedures on a quarterly basis and did not find any material non-compliance.
SOCIAL RESPONSIBILITY AND SUSTAINABILITY

The Group is committed to being a good corporate citizen and contributes to the well-being of the communities in
which it operates its bus shelter network. To this end, subject to availability, the Group donates approximately 10% of
its advertising panels to local municipal governments to help promote community events. The Group is also a donor
of sponsored advertising spaces for various charitable causes.
DIRECTORS SECURITIES TRANSACTIONS

The Group has adopted strict procedures that require all directors to confirm that their securities transactions are fully
compliant with the Model Code for Securities Transactions by Directors of Listed Issuers (the Model Code) as set out
in Appendix 10 to the Listing Rules. In 2015, all directors confirmed their compliance with the Model Code. Specified
employees who are likely to be in possession of inside information related to the Group and its activities must also
comply with guidelines as exacting as those set out in the Model Code. No non-compliance report was received from
any such employee during 2015.
DIRECTORS INTERESTS
Full details of individual directors interests in the shares and share options of the Company are set out on pages 54 to
60 of the Report of the Directors.
OPEN COMMUNICATION
The Group is committed to acting in good faith and in the best interests of its shareholders at all times and in all areas
of its operations. The Group actively promotes open communication and full disclosure of all information needed to
protect and maximise returns for its shareholders.
COMMUNICATION WITH SHAREHOLDERS

Effective communication with shareholders has always been one of the Groups priorities. The various channels by
which the Group communicates with its shareholders include interim and annual reports, the Companys websites,
and general investor meetings held either face to-face or via telephone conference calls. The Group reports to its
shareholders twice a year and maintains a regular dialogue with investors. Interim and annual results are announced
as early as possible to keep shareholders informed of the Groups performance and operations in a timely manner. The
publication of the Groups financial results on a semi-annual basis enhances transparency regarding its performance
and ensures that details of new developments affecting the Group are made available in a timely manner. The Group
typically announces its interim and annual results no later than two months and three months, respectively after the
end of the relevant periods. An Annual General Meeting will be held no later than 6 months after the financial year-
end, and all shareholders are encouraged to attend the Annual General Meeting to discuss the progress of the Groups
businesses.
The shareholders communication policy is published on the Groups website at www.clear-media.net.

SHAREHOLDERS RIGHTS
Right to convene a special general meeting
The procedures for shareholders to convene a special general meeting in accordance with the Companys Bye-laws,
the Bermuda Companies Act 1981 and applicable legislation and regulation are set out as follows:
1 Members of the Company (Members) holding at the date of deposit of the requisition not less than 10% of the
paid-up capital of the Company carrying the right to vote at general meetings of the Company shall at all times
have the right, by written requisition sent to the Companys registered office in Bermuda at Clarendon House, 2
Church Street, Hamilton, HM11 Bermuda and its principal office in Hong Kong at Suite 1202, 12th Floor, The Lee
Gardens, 33 Hysan Avenue, Causeway Bay, Hong Kong, for the attention of the company secretary of the
Company (Company Secretary), to require a special general meeting (SGM) to be called by the board of
directors of the Company (Board) for the transaction of any business specified in such requisition.
2 The written requisition must state the purposes of the general meeting, signed by the Member(s) concerned and
may consist of several documents in like form, each signed by one or more of those Members.
3 If the requisition is in order, the Company Secretary will ask the Board to convene a SGM by serving sufficient
notice in accordance with the statutory requirements to all the registered Members. On the contrary, if the
requisition is invalid, the Members concerned will be advised of this outcome and accordingly, a SGM will not be
convened as requested.
4 The notice period to be given to all the registered Members for consideration of the proposal raised by the
Member(s) concerned at a SGM varies according to the nature of the proposal, as follows:
at least twenty-one (21) clear days notice in writing if the proposal constitutes a special resolution of the
Company, which cannot be amended other than to a mere clerical amendment to correct a patent error;
and
at least fourteen (14) clear days notice in writing if the proposal constitutes an ordinary resolution of the
Company.
Members who have enquiries about the above procedures or have enquiries to put to the Board may write to the
Company Secretary at Suite 1202, 12th Floor, The Lee Gardens, 33 Hysan Avenue, Causeway Bay, Hong Kong.
SHAREHOLDERS RIGHTS (continued)

Right to propose resolutions at general meetings
The procedures for shareholders to make proposals at general meeting other than a proposal of a person for election
as a director according to the Companys Bye-laws, the Bermuda Companies Act 1981 and applicable legislation and
regulation are set out as follows:
1 The Company holds an annual general meeting (AGM) every year, and may hold a general meeting known as a
SGM whenever necessary.
2 Member(s) holding (i) not less than 5% of the total voting rights of all Members having the right to vote at the
general meeting of the Company; or (ii) not less than 100 Members, can submit a written request stating the
resolution intended to be moved at the AGM; or a statement of not more than 1,000 words with respect to the
matter referred to in any proposed resolution or the business to be dealt with at a particular general meeting.
3 The written request/statements must be signed by the Member(s) concerned and deposited at the Companys
registered office in Bermuda at Clarendon House, 2 Church Street, Hamilton, HM11 Bermuda and its principal
office in Hong Kong at Suite 1202, 12th Floor, The Lee Gardens, 33 Hysan Avenue, Causeway Bay, Hong Kong, for
the attention of the Company Secretary, not less than six weeks before the AGM in the case of a requisition
requiring notice of a resolution and not less than one week before the general meeting in the case of any other
requisition.
4 If the written request is in order, the Company Secretary will ask the board of directors of the Company (Board)
(i) to include the resolution in the agenda for the AGM; or (ii) to circulate the statement for the general meeting,
provided that the Member(s) concerned have deposited a sum of money reasonably determined by the Board
sufficient to meet the Companys expenses in serving the notice of the resolution and/or circulating the
statement submitted by the Member(s) concerned in accordance with the statutory requirements to all the
registered Members. On the contrary, if the requisition is invalid or the Member(s) concerned have failed to
deposit sufficient money to meet the Companys expenses for the said purposes, the Member(s) concerned will
be advised of this outcome and accordingly, the proposed resolution will not be included in the agenda for the
AGM; or the statement will not be circulated for the general meeting.
Members who have enquiries about the above procedures or have enquiries to put to the Board may write to the
Company Secretary at Suite 1202, 12th Floor, The Lee Gardens, 33 Hysan Avenue, Causeway Bay, Hong Kong.
Right to nominate directors for election at general meetings

The procedures for shareholders to propose a person for election as a director of the Company are published on the
Groups website at www.clear-media.net.
VOTING RIGHTS
All shares in the Company are ordinary shares. The total number of outstanding shares issued at the date of this
annual report was 541,700,500. All shareholders whose shares are registered in the Companys register of shareholders
on the record date published in the Companys shareholders meeting notice are entitled to vote at the meetings. In
accordance with the Listing Rules, any votes of shareholders at the Companys general meetings are taken by poll.
Results of shareholders meetings are reported to the public via announcements published on the Hong Kong Stock
Exchanges and the Groups websites.
Shareholders who wish to exercise their rights to vote by proxy may do so upon presentation of a written and dated
instrument appointing their proxy. The letter convening each shareholders meeting includes a proxy form which
appoints the Board as proxy for each specific proposal. All shareholders are welcome to ask questions or present
proposals for discussion at these meetings.
CONSTITUTIONAL DOCUMENTS
There is no change in the Companys Bye-laws during the year ended 31 December 2015.
INVESTOR RELATIONS
The Group regards open communication with both existing and potential investors as being vital to its continued
success. To this end, the Group insists on full, honest, equal and timely disclosure of all essential information regarding
its business to the investment community. The Group is committed to transparent communication and is determined
to maintain close ties with the investment community. Our senior management team regularly attends investor
conferences organised by securities houses in Hong Kong, China and overseas.
The Groups corporate website also provides an effective communication platform where the public and investor
community have fast and easy access to up-to-date information regarding the Group.
Investors with queries are encouraged to direct their enquiries to the following:
Jeffrey Yip
Director of Investor Relations and Company Secretary
Suite 1202 The Lee Gardens
33 Hysan Avenue
Causeway Bay
Hong Kong
Telephone: (852) 2235 3977
Fax: (852) 2235 3911
Email: jeffrey.yip@clear-media.net
FINANCIAL CALENDAR 2016

Results Announcement 2015 3 February
Annual General Meeting 27 May
Interim Results Announcement Early-to-mid August
Financial Year End 31 December
SHARE PRICE PERFORMANCE
12.00 30,000
11.00
28,000
10.00
26,000
9.00
24,000
8.00
7.00 22,000
6.00 Share price 20,000

HSI Index
15/1 15/2 15/3 15/4 15/5 15/6 15/7 15/8 15/9 15/10 15/11 15/12
Sources: (Bloomberg)
46.2 million shares were traded on the Main Board of the Hong Kong Stock Exchange in 2015. The highest trading
price for the share was HK$10.06 on 2 June 2015 and the lowest was HK$7.10 on 25 August and 17 December 2015.
Report of the Directors 47
The directors of the Company are pleased to present their report together with the audited financial statements of the
Group for the year ended 31 December 2015.
PRINCIPAL ACTIVITIES
The principal activity of the Company is investment holding. Details of the principal activities of the subsidiaries are
set out in note 1 to the financial statements. There were no significant changes in the nature of the Groups principal
activities during the year.
BUSINESS REVIEW
The business review for the year ended 31 December 2015 is set out in the management discussion and analysis
section from pages 12 to 24.
RESULTS AND DIVIDENDS

The Groups profit for the year ended 31 December 2015 and the state of affairs of the Company and the Group at that
date are set out in the financial statements on pages 65 to 70.
At the Board meeting held on 3 February 2016, the directors proposed a final dividend of HK16 cents per share (2014:
HK15 cents per share) for the year ended 31 December 2015. This final dividend is equivalent to HK$86,672,080 (2014:
HK$81,255,075) based on the 541,700,500 (2014: 541,700,500) outstanding shares. The proposed final dividend has
been classified as a separate component in equity and it has not been recognised as a liability in the financial
statements. Subject to the approval by the shareholders at the forthcoming annual general meeting, the proposed
dividends will be payable on Wednesday, 13 July 2016 to the shareholders registered on the Register of Members on
Wednesday, 8 June 2016.
SUMMARY FINANCIAL INFORMATION

A summary of the published results and assets, liabilities and minority interests of the Group for the last five financial
years, as extracted from the audited financial statements is set out on page 123. This summary does not form part of
the audited financial statements.
The following is a summary of the published consolidated results and of the assets, liabilities and minority interests of
the Group prepared on the basis set out in the note below:
FIVE YEAR FINANCIAL SUMMARY
Year ended 31 December

2015 2014 2013 2012 2011
HK$000 HK$000 HK$000 HK$000 HK$000
Results
Profit attributable to:
Owners of the parent 280,522 240,214 201,008 219,236 187,542
Non-controlling interests 43,053 39,176 34,243 24,544 20,865
Assets and liabilities
Total assets 3,634,781 3,875,511 3,617,047 4,017,026 3,733,576
Total liabilities (832,339) (877,883) (732,323) (639,598) (576,698)
Total equity 2,802,442 2,997,628 2,884,724 3,377,428 3,156,878
PROPERTY, PLANT AND EQUIPMENT AND CONCESSION RIGHTS

Details of movements in the property, plant and equipment and concession rights of the Group for the year ended 31
December 2015 are set out in notes 14 and 15 to the financial statements, respectively.
SHARE CAPITAL AND SHARE OPTIONS

Details of movements in the Companys share capital and share options during the year together with the reasons
therefor, and details of the Companys share option schemes are set out in notes 22 and 23 to the financial statements.
RESERVES
Details of movements in the reserves of the Company and the Group during the year are set out in note 31 to the
financial statements and in the consolidated statement of changes in equity, respectively.
DISTRIBUTABLE RESERVES
As at 31 December 2015, the Companys retained earnings and other components of equity available for cash
distribution and/or distribution in specie amounted to HK$974,543,000 (2014: HK$1,258,100,000) of which
HK$86,672,080 (2014: HK$80,609,775) has been proposed as a final dividend for the year. In accordance with the
Bermuda Companies Act 1981, the Companys contributed surplus may be distributed in certain circumstances.
PRE-EMPTIVE RIGHTS
There are no provisions for pre-emptive rights under the Companys Bye-laws or the laws of Bermuda, being the
jurisdiction in which the Company was incorporated, which would oblige the Company to offer new shares on a pro
rata basis to existing shareholders.
PURCHASE, SALE OR REDEMPTION OF SHARES

The Group has not redeemed any of its listed shares during the year. Neither the Company nor any of its subsidiaries
has purchased or sold any of the Companys listed shares during the year.
CHARITABLE CONTRIBUTIONS
During the year, the Group did not make any charitable contributions (2014: HK$2,519,000).
MAJOR CUSTOMERS AND SUPPLIERS

Sales to the Groups five largest customers accounted for less than 30% of the Groups turnover for the year. Payment
to the Groups five largest suppliers who provide goods and services which are specific to the Groups businesses and
which are required on a regular basis to enable the Group to continue to supply or service its customers accounted for
less than 30% of the Groups total payment to suppliers for the year.
None of the directors, or any of their close associates, or any shareholders (which, to the best knowledge of the
directors, own more than 5% of the Companys issued share capital) had any beneficial interest in the Groups five
largest customers and/or suppliers.
CONNECTED TRANSACTIONS AND CONTINUING CONNECTED TRANSACTIONS

Certain related party transactions as disclosed in note 27 to the financial statements also constituted connected
transactions under the Listing Rules, required to be disclosed in accordance with Chapter 14A of the Listing Rules. The
following transactions between certain connected persons (as defined in the Listing Rules) and the Group have been
entered into and/or are ongoing for which relevant announcements, if necessary, had been made by the Company in
accordance with the requirements of the Listing Rules. The Group entered into the following continuing connected
transactions during the year ended 31 December 2015:
1. CONTINUING CONNECTED TRANSACTIONS

(a) On 11 March 2013, WHA Joint Venture entered into a new three-year framework agreement (the Framework
Agreement) with Guangdong White Horse Advertising Company Limited (GWH) for the years 2013, 2014 and
2015 on substantially the same terms as the previous framework agreement signed on 8 February 2010 by WHA
Joint Venture and GWH. The Framework Agreement provides that GWH may, with the consent of WHA Joint
Venture, assign part or all of the said agreement to an affiliated company or to such other company over which
Mr. Han Zi Dian may exercise influence over the management and day-to-day operations. The assignee will
assume the obligations and rights of GWH under the Framework Agreement and the applicable annual caps for
the transactions under the Framework Agreement will remain unchanged. The underlying transactions pursuant
to the Framework Agreement constitute continuing connected transactions of the Company under the Listing
Rules. At the Special General Meeting held on 12 April 2013, the independent shareholders approved the
Framework Agreement and the annual cap amounts of the transactions under the Framework Agreement for the
years 2013, 2014 and 2015.
WHA Joint Venture is an indirect 80% owned subsidiary of the Company. Mr. Han Zi Dian, a non-executive director
from April 2001 to October 2012 and the brother of Mr. Han Zi Jing, an executive director of the Company, is able to
exercise influence over the management and day-to-day operations as director and general manager of GWH and
controls the composition of a majority of the board of directors of GWH from his indirect 14.2% interest in GWH. As
such, GWH is an associate of Mr. Han Zi Jing (a director) and Mr. Han Zi Dian (an individual who was then a director
of the Company within the last 12 months), and hence a connected person of the Company under Chapter 14A of
the Listing Rules.
Customers of WHA Joint Venture can be classified into two categories, namely (i) advertisers or end-customers
and (ii) advertising agencies. Under the advertising commission arrangement, GWH, as an advertising agency
engaged by end- customers for planning and implementing advertising campaigns, assists WHA Joint Venture in
procuring advertising sales. In return, WHA Joint Venture pays an advertising commission to GWH for successful
sales.
1. CONTINUING CONNECTED TRANSACTIONS (continued)

(a) (continued)
All sales contracts entered into by WHA Joint Venture, including those contracts booked through GWH, are
based on its standard terms and conditions and its standard price list, which are also applicable to sales
contracts with other third party advertising agencies. The amount of advertising commission payable to GWH
for procuring the sales contracts is no more than the applicable standard advertising commission rate payable
to the advertising agencies from time to time. The current applicable rate is 8%.
As with the arrangement with other advertising agencies, the value of sales (net of commission) is settled in cash
as and when the end-customers settle the gross sales amounts with GWH, who in turn settles with WHA Joint
Venture.
The initially approved annual caps for the gross value of sales from GWH for the financial years ending on 31
December 2013, 2014 and 2015 were HK$260.0 million, HK$285.0 million and HK$315.0 million, respectively. At
the Special General Meeting held on 16 July 2014, the independent shareholders approved a supplemental
framework agreement dated 30 May 2014 and the annual caps for the gross value of sales from GWH for the
financial years ending on 31 December 2014 and 2015 were revised to HK$374.0 million and HK$404.0 million,
respectively. The total gross value of sales from GWH for 2015 was approximately HK$347.6 million. The initially
approved annual caps for the advertising commission payable to GWH for each of these financial years shall not
exceed HK$21.0 million, HK$23.0 million and HK$25.0 million, respectively. At the same Special General Meeting
held on 16 July 2014, the independent shareholders approved the revised annual caps of HK$30.0 million and
HK$32.5 million, respectively, for the advertising commission payable to GWH for each of 2014 and 2015. The
total advertising commission payable to GWH for 2015 was approximately HK$20.4 million.
On 22 December 2015, WHA Joint Venture entered into a new three-year framework agreement (2015
Framework Agreement) with GWH, Hainan White Horse Media Advertising Co., Ltd (Hainan White Horse Media
Advertising) and White Horse (Shanghai) Investment Company Limited (WHM, and GWH, Hainan White Horse
Media Advertising and White Horse Shanghai Investment, together the Service Providers) for the years 2016,
2017 and 2018 on substantially the same terms as the Framework Agreement, save for the addition of Hainan
White Horse Media Advertising and White Horse Shanghai Investment as signing parties to the Framework
Agreement. The Framework Agreement provides that the Service Providers may, with the consent of the WHA
Joint Venture, assign part or all of the said agreement to an affiliated company or to such other company over
which Mr. Han Zi Dian may exercise influence over the management and day-to-day operations. The assignee(s)
will assume the obligations and rights of the relevant Service Provider(s) under the Framework Agreement and
the applicable annual caps for the transactions under the Framework Agreement will remain unchanged. The
underlying transactions pursuant to the Framework Agreement constitute continuing connected transactions of
the Company under the Listing Rules. At the Special General Meeting held on 28 January 2016, the independent
shareholders approved the Framework Agreement and the annual cap amounts of the transactions under the
Framework Agreement for the years 2016, 2017 and 2018.
The approved annual caps for the gross value of sales from the Service Providers for the financial years ending
on 31 December 2016, 2017 and 2018 are HK$414.0 million, HK$424.5 million and HK$435.0 million, respectively.
The approved annual caps for the advertising commission payable to the Service Providers for each of these
financial years are HK$33.0 million, HK$34.0 million and HK$35.0 million, respectively.
1. CONTINUING CONNECTED TRANSACTIONS (continued)

(b) On 3 March 2011, WHA Joint Venture and GWH entered into a creative services agreement pursuant to which
GWH agreed to provide to WHA Joint Venture creative design services for posters, sales and marketing materials
and company profiles, for a term from 1 January 2011 to 31 December 2013. Under the agreement, WHA Joint
Venture shall pay to GWH the fees for such services on or before the 25th day of each calendar month.
On 28 January 2014, the Board resolved that WHA Joint Venture shall enter into a new creative services
agreement with GWH to renew the terms under the previous creative services agreement entered into on 3
March 2011. The terms of such new creative services agreement are substantially the same as the terms under
the previous creative services agreement entered into on 3 March 2011, and it has a fixed term of three years
which took effect on 1 January 2014 and will expire on 31 December 2016. These transactions were entered into
on terms no less favourable than those available to or from independent third parties. The annual cap for the
consideration for each of the financial years ending on 31 December 2014, 2015 and 2016 will be no more than
RMB3,000,000. The total consideration for 2015 was approximately RMB2,830,000 (equivalent to approximately
HK$3,489,000).
(c) On 20 April 2007, WHA Joint Venture entered into maintenance services agreements with various branches of
White Horse Holding Company Limited (White Horse Holding) for a fixed term until 31 December 2008 and
such agreements were subsequently renewed until 31 December 2012.
Following a capital injection exercise into White Horse Holding in November 2009, Mr. Han Zi Dian became
interested in more than 50% of the voting power of White Horse Holding. Mr. Han Zi Dian was a non-executive
director of the Company from April 2001 to October 2012 and is the brother of Mr. Han Zi Jing, an executive
director of the Company. As such, White Horse Holding has been an associate of a director since November 2009,
and hence a connected person of the Company under Chapter 14A of the Listing Rules. It follows that all the
transactions between the Group and White Horse Holding thereafter constitute continuing connected
transactions under Chapter 14A of the Listing Rules.
The Board resolved to enter into a framework maintenance services agreement (the Framework Maintenance
Services Agreement) on 24 January 2013 with White Horse Holding in place of the maintenance service
arrangements between WHA Joint Venture and White Horse Holding. Pursuant to the Framework Maintenance
Services Agreement, White Horse Holding will provide cleaning, maintenance and related services to the bus
shelters of WHA Joint Venture through its branches. Under the Framework Maintenance Services Agreement, the
maintenance fees would be settled by WHA Joint Venture on a monthly basis before the tenth day of every
month.
On 28 January 2014, the Board resolved that WHA Joint Venture shall enter into a new maintenance services
agreement with White Horse Holding to renew the terms under the Framework Maintenance Services
Agreement. The terms of such maintenance services agreement are substantially the same as the terms under
the Framework Maintenance Services Agreement, and it has a fixed term of three years which took effect on 1
January 2014 and will expire on 31 December 2016. The annual caps for the consideration for each of the
financial years ending on 31 December 2014, 2015 and 2016 will not exceed HK$55,000,000, HK$60,000,000 and
HK$65,000,000, respectively. For the year ended 31 December 2015, the maintenance fee paid or payable by
WHA Joint Venture for the services provided by White Horse Holding was HK$38,885,000.
2. CONNECTED TRANSACTIONS
During the year, WHA Joint Venture entered into certain arrangements with Beijing YiHong Media Company
Limited (BYH) and a third party company whereby BYH agreed to act as agent and represent WHA Joint
Venture to rent certain shelters from the third party company for the display of WHA Joint Venture advertising
campaign and provide advertising display and other services to WHA Joint Venture. BYH is a subsidiary of WHM
and also a related party of the Company because Mr. Han Zi Dian is the brother of MR. Han Zi Jing, an executive
director of the Company, and Mr. Han Zi Dian is able to influence over the management and day-to-day
operations of WHM. In the opinion of the directors, these transaction were entered into on terms similar to those
available from independent third parties. The total consideration for 2015 was HK$723,000 (2014: Nil).
The independent non-executive directors confirmed that all the connected transactions:
(a) had been entered into, and the agreements governing those transactions were entered into, by the Group in the
ordinary and usual course of business;
(b) had been conducted either (i) on normal commercial terms (which expression shall be applied by reference to
transactions of a similar nature and to be made by similar entities); or (ii) if there are not sufficient comparable
transactions to judge whether they are on normal commercial terms, on terms no less favourable than terms
available to or from independent third parties, as appropriate; and
(c) had been entered into either (i) in accordance with the relevant agreements governing them on terms that are
fair and reasonable and in the interests of the Groups shareholders as a whole; or (ii) (where there are no such
agreements) on terms no less favourable than those available to or from independent third parties, as
appropriate.
Ernst & Young, the Companys auditor, was engaged to report on the Groups continuing connected transactions in
accordance with Hong Kong Standard on Assurance Engagements 3000 Assurance Engagements Other Than Audits or
Reviews of Historical Financial Information and with reference to Practice Note 740 Auditors Letter on Continuing
Connected Transactions under the Hong Kong Listing Rules issued by the Hong Kong Institute of Certified Public
Accountants. Ernst & Young has issued their unqualified letter containing their findings and conclusions in respect of
the continuing connected transactions disclosed above by the Group in accordance with Rule 14A.56 of the Listing
Rules.
The auditors of the Group confirmed to the directors that:
(a) the transactions have received the approval of the board of directors;
(b) the transactions were, in all material respects, in accordance with the pricing policies of the Company;
(c) the transactions were entered into, in all material respects, in accordance with the relevant agreements
governing those transactions; and
(d) the transactions have not exceeded the caps set out in the respective paragraphs above.
DIRECTORS
The directors of the Company during the year and up to the date of this report were:
Executive Directors:
Joseph Tcheng (appointed with effect from 1 January 2016)
Mark Thewlis (relinquished his position with effect from 1 January 2016)
Han Zi Jing
Teo Hong Kiong
Zhang Huai Jun
Non-Executive Directors:
William Eccleshare
Peter Cosgrove
Zhu Jia
Cormac OShea
Independent Non-Executive Directors:

Desmond Murray
Leonie Ki Man Fung
Wang Shou Zhi
Thomas Manning
Alternate Directors:
Zou Nan Feng (alternate director to Zhang Huai Jun)
In accordance with clause 87 of the Companys Bye-laws and board resolution, one-third of the directors will retire by
rotation and, if eligible, will offer themselves for re-election at the forthcoming annual general meeting. The directors
of the Company, including the independent non-executive directors, the Chairman and the Chief Executive Officer are
subject to retirement by rotation and re-election in accordance with the provisions of the Companys Bye-laws at each
annual general meeting.
DIRECTORS AND SENIOR MANAGEMENTS BIOGRAPHIES

Biographical details of the directors of the Company and the senior management of the Group are set out on pages 25
to 29 of the annual report.
DIRECTORS SERVICE CONTRACTS

Each of the executive directors has entered into a service agreement with the Company for a term of three years and
terminable by not less than three months notice in writing served by either party to the other.
Apart from the foregoing, no director proposed for re-election at the forthcoming annual general meeting has a
service contract with the Company which is not determinable by the Company within one year without payment of
compensation, other than statutory compensation.
DIRECTORS REMUNERATION
The directors fees are subject to shareholders approval at general meetings. Other emoluments are determined by
the Companys board of directors with reference to directors duties, responsibilities and performance and the results
of the Group.
DIRECTORS INTERESTS IN CONTRACTS

Save as disclosed in note 27 to the financial statements, no director had a significant beneficial interest, either directly
or indirectly, in any contract of significance to the business of the Group to which the Company, or any of its
subsidiaries, was a party during or at the end of the year.
DIRECTORS AND CHIEF EXECUTIVES INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARES
As at 31 December 2015, the interests and short positions of the directors, the Chief Executive or their associates in
the share capital of the Company or its associated corporations (within the meaning of Part XV of the Securities and
Futures Ordinance (the SFO)), as recorded in the register required to be kept by the Company pursuant to Section
352 of the SFO, or as otherwise notified to the Company and the Hong Kong Stock Exchange pursuant to the Model
Code, were as follows:
A. Long Positions in Ordinary Shares of the Company as at 31 December 2015:
Number of shares held, capacity and nature of interest Percentage

Through of the
Directly spouse Through Companys
beneficially or minor controlled Beneficiary issued share
Name of director owned children corporation of a trust Total capital
Peter Cosgrove 250,000 250,000 0.05%

Han Zi Jing 6,600,000 6,600,000 1.22%
Notes: The 250,000 shares are held by Media General Superannuation Fund of which Mr. Cosgrove is the sole beneficiary.
The 6,600,000 shares are held by Outdoor Media China, Inc. (OMC), a company incorporated in Western Samoa of Offshore Chambers.
As at 31 December 2015, Mr. Han Zi Jing held approximately 94.5% of the issued share capital of Golden Profits Consultants Limited,
which is the beneficial holder of 100% of the shares in OMC. The effective interest of Mr. Han in OMC is therefore 94.5%.
The interests of the directors in the share options of the Company are separately disclosed on pages 57 to 60.
(continued)
B. Long Positions in the Shares of Clear Channel Outdoor Holdings, Inc. as at 31 December 2015:
Clear Channel Outdoor Holdings, Inc. (Note 1)
Number of shares held, capacity and nature of interest shares

Through
Directly spouse Through % of
beneficially or minor controlled Beneficiary issued share
Name of director owned children corporation of a trust Total capital
Mark Thewlis* 14,815 14,815 0.03%

William Eccleshare 316,456 316,456 0.70%
Cormac OShea 17,184 17,184 0.04%
1. Clear Channel Outdoor Holdings, Inc. is an indirect holding company of the Company.
C. Right to Acquire Shares in Clear Channel Outdoor Holdings, Inc. as at at 31 December 2015:
Number of Subscription Price

Outstanding per share of Clear
Options as at Channel Outdoor
Name of director Date of grant 31 December 2015 Option Period Holdings, inc.
Mark Thewlis* 23/05/2007 6,625 23/05/200823/05/2017 US$22.94

23/05/2007 6,625 23/05/200923/05/2017 US$22.94
23/05/2007 6,625 23/05/201023/05/2017 US$22.94
23/05/2007 6,625 23/05/201123/05/2017 US$22.94
16/05/2008 13,250 16/05/200916/05/2018 US$14.55
16/05/2008 13,250 16/05/201016/05/2018 US$14.55
16/05/2008 13,250 16/05/201116/05/2018 US$14.55
16/05/2008 13,250 16/05/201216/05/2018 US$14.55
26/03/2012 13,750 26/03/201626/03/2022 US$7.90
* With effect from 1 January 2016, Mr. Mark Thewlis relinquished his position as an executive director.
(continued)
C. Right to Acquire Shares in Clear Channel Outdoor Holdings, Inc. as at 31 December 2015: (continued)
Number of Subscription Price

Outstanding per share of Clear
Options as at Channel Outdoor
Name of director Date of grant 31 December 2015 Option Period Holdings, inc.
William Eccleshare 10/09/2009 28,062 10/09/201010/09/2019 US$4.05

10/09/2009 56,830 10/09/201110/09/2019 US$4.05
10/09/2009 40,006 10/09/201210/09/2019 US$4.05
10/09/2009 40,009 10/09/201310/09/2019 US$4.05
24/02/2010 6,976 24/02/201324/02/2020 US$3.48
24/02/2010 15,524 24/02/201424/02/2020 US$3.48
10/09/2010 15,895 10/09/201110/09/2020 US$4.31
10/09/2010 15,896 10/09/201210/09/2020 US$4.31
10/09/2010 15,895 10/09/201310/09/2020 US$4.31
10/09/2010 15,897 10/09/201410/09/2020 US$4.31
13/12/2010 5,120 10/09/201113/12/2020 US$7.66
13/12/2010 5,120 10/09/201213/12/2020 US$7.66
13/12/2010 5,120 10/09/201313/12/2020 US$7.66
21/02/2011 22,500 21/02/201221/02/2021 US$8.97
21/02/2011 22,500 21/02/201321/02/2021 US$8.97
21/02/2011 22,500 21/02/201421/02/2021 US$8.97
21/02/2011 22,500 21/02/201521/02/2021 US$8.97
26/03/2012 22,500 26/03/201326/03/2022 US$7.90
26/03/2012 22,500 26/03/201426/03/2022 US$7.90
26/03/2012 22,500 26/03/201526/03/2022 US$7.90
26/03/2012 22,500 26/03/201626/03/2022 US$7.90
Cormac OShea 04/04/2014 926 04/04/201504/04/2024 US$8.73

04/04/2014 926 04/04/201604/04/2024 US$8.73
04/04/2014 926 04/04/201704/04/2024 US$8.73
04/04/2014 926 04/04/201804/04/2024 US$8.73
15/06/2015 2,360 15/06/201615/06/2025 US$10.59
15/06/2015 2,360 15/06/201715/06/2025 US$10.59
15/06/2015 2,360 15/06/201815/06/2025 US$10.59
15/06/2015 2,361 15/06/201915/06/2025 US$10.59
1. Clear Channel Outdoor Holdings, Inc. is an indirect holding company of the Company.
Save as disclosed above, none of the directors nor the chief executive had registered an interest or short position in
the shares, underlying shares of the Company or any of its associated corporations that was required to be recorded
pursuant to Section 352 of the SFO, or as otherwise notified to the Company and the Hong Kong Stock Exchange
pursuant to the Model Code.
DIRECTORS RIGHTS TO ACQUIRE SHARES

Apart from as disclosed under the headings Directors and Chief Executives Interests and Short Positions in Shares
and Underlying Shares above and the Share Option Schemes below, at no time during the year were rights to
acquire benefits by means of the acquisition of shares in the Company granted to any director, or his or her respective
spouse or minor children, or were any such rights exercised by them; or was the Company, or any of its holding
companies, subsidiaries or fellow subsidiaries, a party to any arrangement to enable the directors to acquire such
rights in any other body corporate.
SHARE OPTION SCHEMES

Prior to 28 November 2008, the Company operated, among others, a share option scheme (the Old Scheme) for the
purpose of providing incentives and rewards to eligible participants who contributed to the Groups operations. The
Old Scheme became effective on 28 November 2001 and expired on 28 November 2008, after then no further options
had been granted under the Old Scheme. Options which were granted during the life of the Old Scheme shall
continue to be exercisable in accordance with their terms of issue and the last remaining batch of such options
expired on 29 June 2014. Accordingly, there are no outstanding options under the Old Scheme.
At the annual general meeting of the Company on 13 May 2009, an ordinary resolution was passed to approve and
adopt a new share option scheme (the New Scheme). The purpose of the New Scheme is to enable the Company to
grant options to eligible participants of the Company or any subsidiaries of the Company, as determined by the board
of directors in recognition of their contributions to the Group. Under the New Scheme, the directors may, at their
discretion, offer to grant options to any employees, directors or consultants of any company in the Group. The New
Scheme became effective on 19 May 2009 and, unless otherwise cancelled or amended, will remain in force for 10
years from that date.
The total number of shares which may be issued upon exercise of all options to be granted under the New Scheme
shall be subject to a maximum limit of 10% of the shares in issue as at 13 May 2009 (excluding shares which may be
issued upon exercise of options granted under the Old Scheme, whether such options are exercised, outstanding,
cancelled or lapsed), unless the Company obtains an approval from shareholders in a general meeting to refresh such
10% limit in accordance with the Listing Rules. Options lapsed in accordance with the terms of the New Scheme will
not be counted for the purpose of calculating such 10% limit. The limit on the number of shares which may be issued
upon exercise of all outstanding options granted and yet to be exercised under the New Scheme and any other share
option schemes of the Company and/or any of its subsidiaries must not exceed 30% of the shares of the Company in
issue from time to time, and no options may be granted under the New Scheme or any other share option schemes of
the Company and/or any of its subsidiaries if that will result in such 30% limit being exceeded.
SHARE OPTION SCHEMES (continued)

No option may be granted to any person such that the total number of shares issued and to be issued upon the
exercise of options granted and to be granted to such person in any 12-month period up to the date of the latest
grant exceeds 1% of the issued share capital of the Company from time to time.
An option may be exercised in accordance with the respective terms of the New Scheme or Old Scheme at any time
during the option period. The option period was determined by the board of directors and communicated to each
grantee. The board of directors may provide restrictions on the period during which the options may be exercised.
There are no performance targets which must be achieved before any of the options can be exercised except for the
share options granted on 29 June 2007. Share options granted on 29 June 2007 (the 2007 Options) would not
become vested unless the Company achieved an average annual earnings per share growth of 5% each year in the
first three full financial years after the grant date. As the vesting condition was not met, the share option expenses of
the 2007 Options recognised amounting to HK$20 million were reversed in 2010.
The subscription price for the Companys shares under the New Scheme and the Old Scheme was a price determined
by the board of directors and notified to each grantee. The subscription price was the highest of: (i) the nominal value
of a share; (ii) the closing price of the shares as stated in the Hong Kong Stock Exchanges daily quotation sheet on the
date of grant, which must be a business day; and (iii) the average closing price of the shares as stated in the Hong
Kong Stock Exchanges daily quotation sheets for the five business days immediately preceding the date of grant. An
option shall be deemed to have been granted and accepted by an eligible participant (as defined in the respective
schemes) and to have taken effect when the acceptance form as described in the respective schemes is completed,
signed and returned by the grantee with a remittance in favour of the Company of HK$1.00 by way of consideration
for the grant.
On 10 June 2015, 5,000,000 share options were granted to certain eligible participants under the New Scheme. Such
eligible participants included three Executive Directors and one alternate Director. The terms of such grant are set out
from pages 59 to 60.
As at 31 December 2015, the aggregate number of shares issuable under share options granted under the New
Scheme was 5,000,000, which represented approximately 0.92% of the Companys shares in issue as at that date. The
exercise in full of the outstanding share options would, under the present capital structure of the Company, result in
the issue of 5,000,000 additional ordinary shares of HK$0.10 each in the Company and proceeds, before relevant share
issue expenses, of approximately HK$47,700,000.
The maximum number of shares issuable under share options which may be granted to each eligible participant under
the New Scheme within any 12-month period up to the date of the latest grant is limited to 1% of the shares of the
Company in issue at any time. Any further grant of share options in excess of this limit is subject to shareholders
approval in a general meeting.

The share options granted under the New Scheme and Old Scheme for a consideration of HK$1.00 per grant are set
out below:
Number of share options Price of the Companys shares***

At the Immediately
Name or Type of beginning Granted Exercised Expired Forfeited At the Date of Exercise At grant before the At exercise
category of share option of the during during during during end of grant of price per date of exercise date of
participant scheme year the year the year the year the year the year share options* Exercise period share** options date options
HK$ HK$ HK$ HK$
Director
Han Zi Jing The New Scheme 332 (332) 20/05/2009 21/05/2013 to 2.73 2.73 9.77 9.84
20/05/2016
The New Scheme 866,668 (866,668) 20/05/2009 21/05/2014 to 2.73 2.73 9.77 9.84
20/05/2016
The New Scheme 333,333 333,333 10/06/2015 11/06/2018 to 9.54 9.52
10/06/2022
The New Scheme 333,333 333,333 10/06/2015 11/06/2019 to 9.54 9.52
10/06/2022
The New Scheme 333,334 333,334 10/06/2015 11/06/2020 to 9.54 9.52
10/06/2022
867,000 1,000,000 (867,000) 1,000,000
Teo Hong Kiong The New Scheme 250,000 (250,000) 20/05/2009 21/05/2013 to 2.73 2.73 8.25 8.24
20/05/2016
The New Scheme 500,000 (500,000) 20/05/2009 21/05/2014 to 2.73 2.73 8.25 8.24
20/05/2016
The New Scheme 166,666 166,666 10/06/2015 11/06/2018 to 9.54 9.52
10/06/2022
The New Scheme 166,666 166,666 10/06/2015 11/06/2019 to 9.54 9.52
10/06/2022
The New Scheme 166,668 166,668 10/06/2015 11/06/2020 to 9.54 9.52
10/06/2022
750,000 500,000 (750,000) 500,000
Zhang Huai Jun The New Scheme 666 (666) 20/05/2009 21/05/2013 to 2.73 2.73 9.77 9.84
20/05/2016
The New Scheme 533,334 (533,334) 20/05/2009 21/05/2014 to 2.73 2.73 9.77 9.84
20/05/2016
The New Scheme 166,666 166,666 10/06/2015 11/06/2018 to 9.54 9.52
10/06/2022
The New Scheme 166,666 166,666 10/06/2015 11/06/2019 to 9.54 9.52
10/06/2022
The New Scheme 166,668 166,668 10/06/2015 11/06/2020 to 9.54 9.52
10/06/2022
534,000 500,000 (534,000) 500,000
Zou Nan Feng The New Scheme 400,000 (400,000) 20/05/2009 21/05/2014 to 2.73 2.73 9.77 9.84
20/05/2016
The New Scheme 100,000 100,000 10/06/2015 11/06/2018 to 9.54 9.52
10/06/2022
The New Scheme 100,000 100,000 10/06/2015 11/06/2019 to 9.54 9.52
10/06/2022
The New Scheme 100,000 100,000 10/06/2015 11/06/2020 to 9.54 9.52
10/06/2022
400,000 300,000 (400,000) 300,000
Number of share options Price of the Companys shares***

At the Immediately
Name or Type of beginning Granted Exercised Expired Forfeited At the Date of Exercise At grant before the At exercise
category of share option of the during during during during end of grant of price per date of exercise date of
participant scheme year the year the year the year the year the year share options* Exercise period share** options date options
HK$ HK$ HK$ HK$
Others
Member of senior The New Scheme 1,000 (1,000) 20/05/2009 21/05/2013 to 2.73 2.73 9.19 9.21
management and 20/05/2016
other employees of The New Scheme 1,750,000 (1,750,000) 20/05/2009 21/05/2014 to 2.73 2.73 9.19 9.21
the Group 20/05/2016
The New Scheme 899,994 899,994 10/06/2015 11/06/2018 to 9.54 9.52
10/06/2022
The New Scheme 899,994 899,994 10/06/2015 11/06/2019 to 9.54 9.52
10/06/2022
The New Scheme 900,012 900,012 10/06/2015 11/06/2020 to 9.54 9.52
10/06/2022
1,751,000 2,700,000 (1,751,000) 2,700,000
In aggregate The New Scheme 251,998 (251,998) 20/05/2009 21/05/2013 to 2.73 2.73 9.27 9.30
20/05/2016
The New Scheme 4,050,002 (4,050,002) 20/05/2009 21/05/2014 to 2.73 2.73 9.27 9.30
20/05/2016
The New Scheme 1,666,659 1,666,659 10/06/2015 11/06/2018 to 9.54 9.52
10/06/2022
The New Scheme 1,666,659 1,666,659 10/06/2015 11/06/2019 to 9.54 9.52
10/06/2022
The New Scheme 1,666,682 1,666,682 10/06/2015 11/06/2020 to 9.54 9.52
10/06/2022
4,302,000 5,000,000 (4,302,000) 5,000,000
* The vesting period of the share options is from the date of grant until the commencement of the exercise period.
** The exercise price of the share options is subject to adjustment in the case of rights or bonus issues, or other similar changes in the Companys
share capital.
*** The price of the Companys shares disclosed as at the date of the grant of the share options is the Hong Kong Stock Exchange closing price on
the trading day immediately prior to the date of the grant of the options. The price of the Companys shares disclosed as at the date of the
exercise of the share options is the weighted average of the Hong Kong Stock Exchange closing prices over all of the exercises of options within
the disclosure line.
On 10 June 2015, 5,000,000 share options were granted to certain eligible participants under the New Scheme. Such
eligible participants included three Executive Directors and one alternate Director.
Apart from the foregoing, at no time during the year ended 31 December 2015 was the Company, or any of its
subsidiaries, a party to any arrangement to enable the directors or any of their respective spouses or minor children to
acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.
SUBSTANTIAL SHAREHOLDERS AND OTHER PERSONS INTERESTS AND SHORT POSITIONS IN SHARES AND
UNDERLYING SHARES
As at 31 December 2015, the following interests and short positions of 5% or more in the issued share capital and
share options of the Company were recorded in the register of interests required to be kept by the Company pursuant
to Section 336 of the SFO:
Long Positions
Percentage of
the Companys
Number of issued share
Name Note shares held capital
Clear Channel KNR Neth Antilles NV 1 273,140,500 50.42%

International Value Advisers, LLC 2 105,683,770 19.51%
Notes:
1. As at 31 December 2015, Clear Channel KNR Neth Antilles NV was an indirect wholly owned subsidiary of Clear Channel Outdoor Holdings, Inc.
iHeartMedia, Inc. owns approximately 90% of the outstanding equity of Clear Channel Outdoor Holdings, Inc. Approximately 67% of the
outstanding voting equity of iHeartMedia Inc., was indirectly held jointly by Bain Capital Investors, LLC and Thomas H Lee Advisors LLC.
2. International Value Advisers, LLC notified the Hong Kong Stock Exchange that as at 13 December 2012, 105,683,770 shares of the Company were
held by it. Subsequent to 31 December 2015, International Value Advisers, LLC notified the Hong Kong Stock Exchange that as at 29 January
2016, 102, 298, 770 shares of the Company were held by it.
Save as disclosed above, as at 31 December 2015, no person or corporation, other than the directors and Chief
Executive of the Company, whose interests are set out in the section Directors and Chief Executives Interests and
Short Positions in the Shares and Underlying Shares above, had registered an interest of short position in the shares
or underlying shares of the Company that was required to be recorded pursuant to Section 336 of the SFO.
SUFFICIENCY OF PUBLIC FLOAT

Based on information that is publicly available to the Company and within the knowledge of the directors, at least
25% of the Companys total issued share capital was held by the public as at the date of this report.
CODE OF CORPORATE GOVERNANCE PRACTICES

In the opinion of the Directors, the corporate governance practices adopted by the Group during the period from 1
January 2015 to 31 December 2015 were in line with the code provisions set out in the Corporate Governance Code
and Corporate Governance Report as set out in Appendix 14 to the Listing Rules.
MODEL CODE FOR SECURITIES TRANSACTIONS

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out under
Appendix 10 to the Listing Rules as the Companys code of conduct for dealings in securities of the Company by the
directors. Based on specific enquiry of the Companys directors, the Company confirmed that the directors complied
with the required standard set out in the Model Code throughout the accounting period covered by the annual report.
MATERIAL LEGAL PROCEEDINGS

Save as disclosed in note 26 to the financial statements, as at 31 December 2015, the Group was not involved in any
material litigation or arbitration and no material litigation or claim was pending or threatened or made against the
Group as far as the board of directors was aware of.
AUDITORS
A resolution for the reappointment of Ernst & Young as auditors of the Company will be proposed at the forthcoming
annual general meeting.
ON BEHALF OF THE BOARD

Joseph Tcheng
Chairman
Hong Kong
3 February 2016
Independent Auditors Report 63
Ernst & Young Tel: +852 2846 9888

22/F, CITIC Tower Fax: +852 2868 4432
1 Tim Mei Avenue ey.com
Central, Hong Kong
To the shareholders of Clear Media Limited

(Incorporated in Bermuda with limited liability)
We have audited the consolidated financial statements of Clear Media Limited (the Company) and its subsidiaries set
out on pages 65 to 120, which comprise the consolidated statement of financial position as at 31 December 2015, and
the consolidated statement of profit or loss, the consolidated statement of comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended, and a summary
of significant accounting policies and other explanatory information.
DIRECTORS RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS

The directors of the Company are responsible for the preparation of consolidated financial statements that give a true
and fair view in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of
Certified Public Accountants and the disclosure requirements of the Hong Kong Companies Ordinance, and for such
internal control as the directors determine is necessary to enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. Our report is
made solely to you, as a body, in accordance with section 90 of the Bermuda Companies Act 1981, and for no other
purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.
We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of
Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditors judgement, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error. In making those risk assessments, the auditors consider internal control relevant to the entitys preparation of
consolidated financial statements that give a true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the
consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
64 Independent Auditors Report
OPINION
In our opinion, the consolidated financial statements give a true and fair view of the financial position of the Company
and its subsidiaries as at 31 December 2015, and of their financial performance and cash flows for the year then ended
in accordance with Hong Kong Financial Reporting Standards and have been properly prepared in compliance with
the disclosure requirements of the Hong Kong Companies Ordinance.
Ernst & Young

Certified Public Accountants
Hong Kong
3 February 2016
Consolidated Statement of Profit or Loss 65

Year ended 31 December 2015
2015 2014
Notes HK$000 HK$000
Revenue 6 1,832,723 1,760,676

Cost of sales (1,028,327) (1,034,539)
Gross profit 804,396 726,137
Other income 6 9,906 20,319
Selling and distribution expenses (187,615) (176,685)
Administrative expenses (174,250) (166,994)
Other expenses (6,562) (11,567)
Finance costs 10 (2,247) (3,732)
PROFIT BEFORE TAX 7 443,628 387,478
Income tax expense 11 (120,053) (108,088)
PROFIT FOR THE YEAR 323,575 279,390
ATTRIBUTABLE TO:
Owners of the parent 280,522 240,214
Non-controlling interests 43,053 39,176
323,575 279,390
EARNINGS PER SHARE ATTRIBUTABLE
TO ORDINARY EQUITY HOLDERS OF THE PARENT
Basic 13 HK51.92 cents HK44.75cents
Diluted 13 HK51.83 cents HK44.49cents
Details of the dividend proposed for the year are disclosed in note 12 to the financial statements.
66 Consolidated Statement of Comprehensive Income

2015 2014
HK$000 HK$000
Profit for the year 323,575 279,390

Other comprehensive loss to be reclassified
to profit or loss in subsequent periods:
Exchange differences on translation of foreign operations (136,492) (72,257)

Other comprehensive loss for the year, net of tax (136,492) (72,257)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 187,083 207,133
ATTRIBUTABLE TO:
Owners of the parent 142,070 166,817
187,083 207,133
Consolidated Statement of Financial Position 67

31 December 2015
2015 2014
Notes HK$000 HK$000
NON-CURRENT ASSETS
Property, plant and equipment 14 60,767 26,488
Concession rights 15 1,857,462 1,867,726
Long-term prepayments, deposits and other receivables 16 88,760 94,176
Total non-current assets 2,006,989 1,988,390
CURRENT ASSETS
Trade receivables 17 687,157 631,882
Prepayments, deposits and other receivables 18 143,029 115,463
Due from related parties 19 106,754 88,575
Pledged deposits and restricted cash 20 1,530 1,597
Cash and cash equivalents 20 689,322 1,049,604
Total current assets 1,627,792 1,887,121
CURRENT LIABILITIES
Other payables and accruals 645,741 731,143
Deferred income 3,581 5,087
Tax payable 78,108 36,412
Total current liabilities 727,430 772,642
NET CURRENT ASSETS 900,362 1,114,479
TOTAL ASSETS LESS CURRENT LIABILITIES 2,907,351 3,102,869
NON-CURRENT LIABILITIES
Deferred tax liabilities 21 104,909 105,241
Total non-current liabilities 104,909 105,241
Net assets 2,802,442 2,997,628
EQUITY
Equity attributable to owners of the parent
Share capital 22 54,170 53,740
Other reserves 24 2,633,493 2,862,497
2,687,663 2,916,237
Total equity 2,802,442 2,997,628
Han Zi Jing Teo Hong Kiong

Director Director
68 Consolidated Statement of Changes in Equity

Attributable to owners of the parent

Share Share Exchange Non-
Share premium option Contributed fluctuation Retained controlling Total
capital account reserve surplus reserve profits Total interests equity
HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000
As at 1 January 2014 53,646 825,752 8,608 271,657 733,901 933,318 2,826,882 57,842 2,884,724
Profit for the year 240,214 240,214 39,176 279,390
Other comprehensive income/(loss) (73,397) (73,397) 1,140 (72,257)
Total comprehensive income/(loss)
for the year (73,397) 240,214 166,817 40,316 207,133
Share options exercised 94 3,865 (1,393) 2,566 2,566
Equity-settled share option arrangements 470 470 470
Dividends paid to a non-controlling
shareholder (16,767) (16,767)
Final 2013 dividend paid (80,498) (80,498) (80,498)
At 31 December 2014 53,740 829,617 7,685 191,159 660,504 1,173,532 2,916,237 81,391 2,997,628
As at 1 January 2015 53,740 829,617 7,685 191,159 660,504 1,173,532 2,916,237 81,391 2,997,628
Profit for the year 280,522 280,522 43,053 323,575
Other comprehensive income/(loss) (138,452) (138,452) 1,960 (136,492)
Total comprehensive income/(loss)
for the year (138,452) 280,522 142,070 45,013 187,083
Share options exercised 430 17,689 (6,375) 11,744 11,744
Equity-settled share option arrangements 2,219 2,219 2,219
Dividends paid/payable to
a non-controlling shareholder (11,625) (11,625)
Final 2014 dividend paid (81,255) (81,255) (81,255)
2014 special dividend paid (258,312) (45,040) (303,352) (303,352)
At 31 December 2015 54,170 847,306 3,529 (67,153) 522,052 1,327,759 2,687,663 114,779 2,802,442
Consolidated Statement of Cash Flows 69

2015 2014
Notes HK$000 HK$000
CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax 443,628 387,478
Adjustments for:
Impairment and write-down of concession rights 7 2,470 10,474
Loss on disposal of concession rights 7 3,467 2,335
Impairment losses of trade receivables recognised 7 16,426 3,992
Loss on disposal of items of property, plant and equipment 7 625 18
Depreciation of items of property, plant and equipment 7 11,950 10,251
Recognition of prepaid lease payments 4,949 2,667
Amortisation of concession rights 7 344,990 327,716
Foreign exchange losses, net 7 1,999 2,419
Other finance costs 248 1,309
Cash-settled share-based payments 7 (6,829) 8,090
Equity-settled share option expense 7 2,219 470
Interest income 6 (9,906) (20,319)
816,236 736,900
Increase in long-term prepayments, deposits and other receivables (3,760) (28,843)
Increase in trade receivables (100,060) (160,062)
(Increase)/decrease in prepayments, deposits and other receivables (33,678) 27,421
(Increase)/decrease in amounts due from related parties (22,154) 57,142
(Decrease)/increase in other payables and accruals (9,284) 46,515
(Decrease)/increase in deferred income (1,278) 1,379
Cash generated from operations 646,022 680,452
Income taxes paid (89,009) (115,747)
Net cash flows from operating activities 557,013 564,705
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of items of property, plant and equipment,
excluding construction in progress (46,668) (10,815)
Proceeds from disposal of items of property, plant and equipment 77 211
Proceeds from disposal of concession rights 1,006 105
Purchase of concession rights (466,205) (333,509)
Interest received 3,159 20,330
Decrease in pledged deposits and restricted cash 29,267
Net cash flows used in investing activities (508,631) (294,411)
70 Consolidated Statement of Cash Flows

2015 2014
HK$000 HK$000
Net cash flows used in investing activities (508,631) (294,411)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of share options 11,744 2,566
Dividends paid to shareholders (384,607) (80,498)
Dividends paid to a non-controlling shareholder (5,421) (16,767)
Net cash flows used in financing activities (378,284) (94,699)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (329,902) 175,595
Cash and cash equivalents at beginning of year 1,049,604 892,822
Effect of foreign exchange rate changes, net (30,380) (18,813)
CASH AND CASH EQUIVALENTS AT END OF YEAR 689,322 1,049,604
ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS
Cash and bank balances 689,322 1,049,604
Notes to Financial Statements 71
1. CORPORATE AND GROUP INFORMATION

Clear Media Limited is an exempted company incorporated in Bermuda on 30 March 2001 under the Companies
Act 1981 of Bermuda. The registered office of the Company is located at Clarendon House, 2 Church Street,
Hamilton HM 11, Bermuda.
The principal activity of the Company is investment holding. Details of the principal activities of the Companys
subsidiaries are set out below. There were no significant changes in the nature of the subsidiaries principal
activities during the year.
In the opinion of the directors, the parent and the ultimate holding company of the Company is iHeart Media,
Inc. which is incorporated in the United States of America.
Information about subsidiaries

Particulars of the Companys principal subsidiaries are as follows:
Nominal value of
Place of issued and Percentage of equity
incorporation/ fully paid-up attributable
registration and share/registered to the Company Principal
Name business capital Direct Indirect activities
China Outdoor Media British Virgin Ordinary 100 Investment

Investment Inc. Islands HK$34,465 holding
China Outdoor Media Investment Hong Kong Ordinary 100 Investment

(Hong Kong) Company Limited HK$1,000 holding
(China Outdoor Media (HK))
Hainan White Horse Advertising PRC# US$60,000,000/ 80 Operation of

Media Investment Company US$60,000,000 outdoor
Limited advertising
(the WHA Joint Venture)* business
* Not audited by Ernst & Young, Hong Kong or another member firm of the Ernst & Young global network
#
The Peoples Republic of China excluding, for the purpose of these financial statements, Hong Kong, Macau and Taiwan.
WHA Joint Venture was established in the PRC on 24 March 1998 as a Sino-foreign equity joint venture with a
tenure of 30 years. On 4 April 2001, WHA Joint Venture changed its legal structure from a Sino-foreign equity
joint venture to a Sinoforeign co-operative joint venture. At the same time, the registered capital of WHA Joint
Venture increased from HK$100,000,000 to US$60,000,000 with Hainan White Horse Advertising Co., Ltd (Hainan
White Horse) and China Outdoor Media (HK) sharing 20% and 80% of interests, respectively.
1. CORPORATE AND GROUP INFORMATION (continued)

According to the agreement entered into by China Outdoor Media (HK) and Hainan White Horse on 3 September
2001, for the fiscal years 2001 to 2005 (both years inclusive), China Outdoor Media (HK) would be entitled to 90%
of the after-tax profits of WHA Joint Venture. According to the subsequent agreements entered into by China
Outdoor Media (HK) and Hainan White Horse, the term of China Outdoor Media (HK)s entitlement of 90% of the
after- tax profits of WHA Joint Venture has been extended to 31 December 2016 at a consideration of
HK$250,000 payable to Hainan White Horse each year for the fiscal years 2006 to 2016 (both years inclusive). The
agreement is renewable every two years. The Group expects the agreement will be renewed for the next two
years following the expiry of the existing agreement on 31 December 2016.
2.1 BASIS OF PREPARATION

These financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards
(HKFRSs) (which include all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards
(HKASs) and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants (HKICPA),
accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong
Companies Ordinance. They have been prepared under the historical cost convention, except for cash-settled
share-based payments which have been measured at fair value. These financial statements are presented in
Hong Kong dollars and all values are rounded to the nearest thousand except when otherwise indicated.
Basis of consolidation
The consolidated financial statements include the financial statements of the Company and its subsidiaries
(collectively referred to as the Group) for the year ended 31 December 2015. A subsidiary is an entity (including
a structured entity), directly or indirectly, controlled by the Company. Control is achieved when the Group is
exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect
those returns through its power over the investee (i.e., existing rights that give the Group the current ability to
direct the relevant activities of the investee).
When the Company has, directly or indirectly, less than a majority of the voting or similar rights of an investee,
the Group considers all relevant facts and circumstances in assessing whether it has power over an investee,
including:
(a) the contractual arrangement with the other vote holders of the investee;
(b) rights arising from other contractual arrangements; and
(c) the Groups voting rights and potential voting rights.
The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using
consistent accounting policies. The results of subsidiaries are consolidated from the date on which the Group
obtains control, and continue to be consolidated until the date that such control ceases.
Profit or loss and each component of other comprehensive income are attributed to the owners of the parent of
the Group and to the non-controlling interests, even if this results in the non-controlling interests having a
deficit balance. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to
transactions between members of the Group are eliminated in full on consolidation.
2.1 BASIS OF PREPARATION (continued)

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control described in the accounting policy for subsidiaries
below.
2.2 CHANGES IN ACCOUNTING POLICY AND DISCLOSURES

The Group has adopted the following revised standards for the first time for the current years financial
statements.
Amendments to HKAS 19 Defined Benefit Plans: Employee Contributions

Annual Improvements to HKFRSs 20102012 Cycle
Annual Improvements to HKFRSs 20112013 Cycle
Other than as explained below regarding the impact of (state the applicable standards), the adoption of the
above revised standards has had no significant financial effect on these financial statements.
(a) Amendments to HKAS 19 apply to contributions from employees or third parties to defined benefit plans.
The amendments simplify the accounting for contributions that are independent of the number of years of
employee service, for example, employee contributions that are calculated according to a fixed percentage
of salary. If the amount of the contributions is independent of the number of years of service, an entity is
permitted to recognise such contributions as a reduction of service cost in the period in which the related
service is rendered. The amendments have had no impact on the Group as the Group does not have
defined benefit plans.
(b) The Annual Improvements to HKFRSs 20102012 Cycle issued in January 2014 sets out amendments to a
number of HKFRSs. Details of the amendments that are effective for the current year are as follows:
HKFRS 8 Operating Segments: Clarifies that an entity must disclose the judgements made by
management in applying the aggregation criteria in HKFRS 8, including a brief description of
operating segments that have been aggregated and the economic characteristics used to assess
whether the segments are similar. The amendments also clarify that a reconciliation of segment
assets to total assets is only required to be disclosed if the reconciliation is reported to the chief
operating decision maker. The amendments have had no impact on the Group.
HKAS 16 Property, Plant and Equipment and HKAS 38 Intangible Assets: Clarifies the treatment of gross
carrying amount and accumulated depreciation or amortisation of revalued items of property, plant
and equipment and intangible assets. The amendments have had no impact on the Group as the
Group does not apply the revaluation model for the measurement of these assets.
HKAS 24 Related Party Disclosures: Clarifies that a management entity (i.e., an entity that provides key
management personnel services) is a related party subject to related party disclosure requirements.
In addition, an entity that uses a management entity is required to disclose the expenses incurred for
management services. The amendment has had no impact on the Group as the Group does not
receive any management services from other entities.
2.2 CHANGES IN ACCOUNTING POLICY AND DISCLOSURES (continued)

(c) The Annual Improvements to HKFRSs 20112013 Cycle issued in January 2014 sets out amendments to a
number of HKFRSs. Details of the amendment that is effective for the current year are as follows:
HKFRS 13 Fair Value Measurement: Clarifies that the portfolio exception in HKFRS 13 can be applied
not only to financial assets and financial liabilities, but also to other contracts within the scope of
HKFRS 9 or HKAS 39 as applicable. The amendment is applied prospectively from the beginning of
the annual period in which HKFRS 13 was initially applied. The amendment has had no impact on the
Group as the Group does not apply the portfolio exception in HKFRS 13.
In addition, the Company has adopted the amendments to the Listing Rules issued by the Hong Kong Stock
Exchange relating to the disclosure of financial information with reference to the Hong Kong Companies
Ordinance (Cap. 622) during the current financial year. The main impact to the financial statements is on the
presentation and disclosure of certain information in the financial statements.
2.3 ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL REPORTING STANDARDS
The Group has not applied the following new and revised HKFRSs, that have been issued but are not yet
effective, in these financial statements.
HKFRS 9 Financial Instruments2

Amendments to HKFRS 10 and Sale or Contribution of Assets between an Investor and its Associate or
HKAS 28 (2011) Joint Venture1
Amendments to HKFRS 10, HKFRS 12 and Investment Entities: Applying the Consolidation Exception1
HKAS 28 (2011)
Amendments to HKFRS 11 Accounting for Acquisitions of Interests in Joint Operations1
HKFRS 14 Regulatory Deferral Accounts3
HKFRS 15 Revenue from Contracts with Customers2
Amendments to HKAS 1 Disclosure Initiative1
Amendments to HKAS 16 and HKAS 38 Clarification of Acceptable Methods of Depreciation and Amortisation1
Amendments to HKAS 16 and HKAS 41 Agriculture: Bearer Plants1
Amendments to HKAS 27 (2011) Equity Method in Separate Financial Statements1
Annual Improvements 20122014 Cycle Amendments to a number of HKFRSs1
1
Effective for annual periods beginning on or after 1 January 2016
2
Effective for annual periods beginning on or after 1 January 2018
3
Effective for an entity that first adopts HKFRSs for its annual financial statements beginning on or after 1 January 2016 and therefore is
not applicable to the Group
2.3 ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL REPORTING STANDARDS (continued)
Further information about those HKFRSs that are expected to be applicable to the Group is as follows:
In September 2014, the HKICPA issued the final version of HKFRS 9, bringing together all phases of the financial
instruments project to replace HKAS 39 and all previous versions of HKFRS 9. The standard introduces new
requirements for classification and measurement, impairment and hedge accounting. The Group expects to
adopt HKFRS 9 from 1 January 2018. During 2015, the Group performed a high-level assessment of the impact of
the adoption of HKFRS 9. This preliminary assessment is based on currently available information and may be
subject to changes arising from further detailed analyses or additional reasonable and supportable information
being made available to the Group in the future. The expected impacts arising from the adoption of HKFRS 9 are
summarised as follows:
(a) Classification and measurement

The Group does not expect that the adoption of HKFRS 9 will have a significant impact on the classification
and measurement of its financial assets. It expects to continue measuring at fair value all financial assets
currently held at fair value. Equity investments currently held as available for sale will be measured at fair
value through other comprehensive income as the investments are intended to be held for the foreseeable
future and the Group expects to apply the option to present fair value changes in other comprehensive
income. Gains and losses recorded in other comprehensive income for the equity investments cannot be
recycled to profit or loss when the investments are derecognised.
(b) Impairment
HKFRS 9 requires an impairment on debt instruments recorded at amortised cost or at fair value through
other comprehensive income, lease receivables, loan commitments and financial guarantee contracts that
are not accounted for at fair value through profit or loss under HKFRS 9, to be recorded based on an
expected credit loss model either on a twelve-month basis or a lifetime basis. The Group expects to apply
the simplified approach and record lifetime expected losses that are estimated based on the present value
of all cash shortfalls over the remaining life of all of its trade and other receivables. The Group will perform
a more detailed analysis which considers all reasonable and supportable information, including forward-
looking elements, for estimation of expected credit losses on its trade and other receivables upon the
adoption of HKFRS 9.
The amendments to HKFRS 10 and HKAS 28 (2011) address an inconsistency between the requirements in HKFRS
10 and in HKAS 28 (2011) in dealing with the sale or contribution of assets between an investor and its associate
or joint venture. The amendments require a full recognition of a gain or loss when the sale or contribution of
assets between an investor and its associate or joint venture constitutes a business. For a transaction involving
assets that do not constitute a business, a gain or loss resulting from the transaction is recognised in the
investors profit or loss only to the extent of the unrelated investors interest in that associate or joint venture.
The amendments are to be applied prospectively.
The amendments to HKFRS 11 require that an acquirer of an interest in a joint operation in which the activity of
the joint operation constitutes a business must apply the relevant principles for business combinations in HKFRS
3. The amendments also clarify that a previously held interest in a joint operation is not remeasured on the
acquisition of an additional interest in the same joint operation while joint control is retained. In addition, a
scope exclusion has been added to HKFRS 11 to specify that the amendments do not apply when the parties
sharing joint control, including the reporting entity, are under common control of the same ultimate controlling
party. The amendments apply to both the acquisition of the initial interest in a joint operation and the
acquisition of any additional interests in the same joint operation. The amendments are not expected to have
any impact on the financial position or performance of the Group upon adoption on 1 January 2016.
2.3 ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL REPORTING STANDARDS (continued)
HKFRS 15 establishes a new five-step model to account for revenue arising from contracts with customers. Under
HKFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be
entitled in exchange for transferring goods or services to a customer. The principles in HKFRS 15 provide a more
structured approach for measuring and recognising revenue. The standard also introduces extensive qualitative
and quantitative disclosure requirements, including disaggregation of total revenue, information about
performance obligations, changes in contract asset and liability account balances between periods and key
judgements and estimates. The standard will supersede all current revenue recognition requirements under
HKFRSs. In September 2015, the HKICPA issued an amendment to HKFRS 15 regarding a one-year deferral of the
mandatory effective date of HKFRS 15 to 1 January 2018. The Group expects to adopt HKFRS 15 on 1 January
2018 and is currently assessing the impact of HKFRS upon adoption.
Amendments to HKAS 1 include narrow-focus improvements in respect of the presentation and disclosure in
financial statements. The amendments clarify:
(i) the materiality requirements in HKAS 1;
(ii) that specific line items in the statement of profit or loss and the statement of financial position may be
disaggregated;
(iii) that entities have flexibility as to the order in which they present the notes to financial statements; and
(iv) that the share of other comprehensive income of associates and joint ventures accounted for using the
equity method must be presented in aggregate as a single line item, and classified between those items
that will or will not be subsequently reclassified to profit or loss.
Furthermore, the amendments clarify the requirements that apply when additional subtotals are presented in
the statement of financial position and the statement of profit or loss. The Group expects to adopt the
amendments from 1 January 2016. The amendments are not expected to have any significant impact on the
Groups financial statements.
Amendments to HKAS 16 and HKAS 38 clarify the principle in HKAS 16 and HKAS 38 that revenue reflects a
pattern of economic benefits that are generated from operating a business (of which the asset is part) rather
than the economic benefits that are consumed through the use of the asset. As a result, a revenue-based
method cannot be used to depreciate property, plant and equipment and may only be used in very limited
circumstances to amortise intangible assets. The amendments are to be applied prospectively. The amendments
are not expected to have any impact on the financial position or performance of the Group upon adoption on 1
January 2016 as the Group has not used a revenue-based method for the calculation of depreciation of its non-
current assets.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Fair Value Measurement
The Group measures its cash-settled share-based payments at fair value at the end of each reporting period. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset
or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The
principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a
liability is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
Level 1 based on quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 based on valuation techniques for which the lowest level input that is significant to the fair value
measurement is observable, either directly or indirectly
Level 3 based on valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group
determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.
Impairment of Non-Financial Assets

Where an indication of impairment exists, or when annual impairment testing for an asset is required other than
financial assets, the assets recoverable amount is estimated. An assets recoverable amount is the higher of the
assets or cash-generating units value in use and its fair value less costs of disposal, and is determined for an
individual asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or groups of assets, in which case the recoverable amount is determined for the cash-generating
unit to which the asset belongs.
An impairment loss is recognised only if the carrying amount of an asset exceeds its recoverable amount. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. An impairment loss is charged to the statement of profit or loss in the period in which it arises in those
expense categories consistent with the function of the impaired asset.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Impairment of Non-Financial Assets (continued)
An assessment is made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such an indication exists, the recoverable
amount is estimated. A previously recognised impairment loss of an asset other than goodwill is reversed only if
there has been a change in the estimates used to determine the recoverable amount of that asset, but not to an
amount higher than the carrying amount that would have been determined (net of any depreciation/
amortisation) had no impairment loss been recognised for the asset in prior years. A reversal of such an
impairment loss is credited to the statement of profit or loss in the period in which it arises.
Related Parties
A party is considered to be related to the Group if:
(a) the party is a person or a close member of that persons family and that person
(i) has control or joint control over the Group;
(ii) has significant influence over the Group; or
(iii) is a member of the key management personnel of the Group or of a parent of the Group;
or
(b) the party is an entity where any of the following conditions applies:
(i) the entity and the Group are members of the same group;
(ii) one entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow
subsidiary of the other entity);
(iii) the entity and the Group are joint ventures of the same third party;
(iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity;
(v) the entity is a post-employment benefit plan for the benefit of employees of either the Group or an
entity related to the Group;
(vi) the entity is controlled or jointly controlled by a person identified in (a);
(vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a parent of the entity); and
(viii) the entity, or any member of a group of which it is a part, provides key management personnel
services to the Group or to the parent of the Group.

Property, Plant and Equipment and Depreciation
Property, plant and equipment, other than construction in progress, are stated at cost less accumulated
depreciation and any impairment losses. The cost of an item of property, plant and equipment comprises its
purchase price and any directly attributable costs of bringing the asset to its working condition and location for
its intended use.
Expenditure incurred after items of property, plant and equipment have been put into operation, such as repairs
and maintenance, is normally charged to the statement of profit or loss in the period in which it is incurred. In
situations where the recognition criteria are satisfied, the expenditure for a major inspection is capitalised in the
carrying amount of the asset as a replacement. Where significant parts of property, plant and equipment are
required to be replaced at intervals, the Group recognises such parts as individual assets with specific useful
lives and depreciates them accordingly.
Depreciation is calculated on the straight-line basis to write off the cost of each item of property, plant and
equipment to its residual value over its estimated useful life. The principal annual rates used for this purpose are
as follows:
Leasehold improvements 20%

Furniture and equipment 20%
Motor vehicles 20%
Where parts of an item of property, plant and equipment have different useful lives, the cost of that item is
allocated on a reasonable basis among the parts and each part is depreciated separately. Residual values, useful
lives and depreciation methods are reviewed, and adjusted if appropriate, at least at each financial year end.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on disposal
or retirement recognised in the statement of profit or loss in the year the asset is derecognised is the difference
between the net sales proceeds and the carrying amount of the relevant asset.
Construction in progress represents bus shelters under construction, which is stated at cost less any impairment
losses, and is not depreciated. Cost comprises the direct costs of construction and capitalised borrowing costs
on related borrowed funds during the period of construction. Construction in progress is reclassified to
concession rights when completed and ready for use.
Concession Rights
Concession rights represent the cost of acquiring operating rights for the placement of advertisements on bus
shelters, unipoles and bus bodies in the Peoples Republic of China (the PRC). Concession rights are stated at
cost less accumulated amortisation and amortised using the straight-line and individual basis over the period of
the rights, which ranges from 5 to 15 years.
In addition, expenditure incurred on the construction of bus shelters is capitalised only when the Group can
demonstrate that it is probable the future economic benefits will flow to the Group and the cost can be
measured reliably. Capitalised construction costs are stated at cost less any impairment losses and are amortised
using the straight-line basis over the estimated useful lives.

Operating Leases
Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted
for as operating leases. Where the Group is the lessee, rentals payable under operating leases net of any
incentives received from the lessor are charged to the statement of profit or loss on the straight-line basis over
the lease terms.
Investments and Other Financial Assets

Initial Recognition and Measurement
Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, loans
and receivables and available-for-sale financial investments, or as derivatives designated as hedging instruments
in an effective hedge, as appropriate. When financial assets are recognised initially, they are measured at fair
value plus transaction costs that are attributable to the acquisition of the financial assets, except in the case of
financial assets recorded at fair value through profit or loss.
All regular way purchases and sales of financial assets are recognised on the trade date, that is, the date that the
Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial
assets that require delivery of assets within the period generally established by regulation or convention in the
marketplace.
Subsequent Measurement
The subsequent measurement of financial assets depends on their classification as follows:
Loans and Receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. After initial measurement, such assets are subsequently measured at amortised cost
using the effective interest rate method less any allowance for impairment. Amortised cost is calculated by
taking into account any discount or premium on acquisition and includes fees or costs that are an integral part
of the effective interest rate. The effective interest rate amortisation is included in finance income in the
statement of profit or loss. The loss arising from impairment is recognised in the statement of profit or loss in
administrative expenses.
Derecognition of Financial Assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognised (i.e., removed from the Groups consolidated statement of financial position) when:
the rights to receive cash flows from the asset have expired; or
the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under a pass-through
arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or
(b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.

Derecognition of Financial Assets (continued)
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risk and rewards of ownership of the asset.
When it has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred
control of the asset, the Group continues to recognise the transferred asset to the extent of the Groups
continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset and
the associated liability are measured on a basis that reflects the rights and obligations that the Group has
retained.
Impairment of Financial Assets

The Group assesses at the end of each reporting period whether there is any objective evidence that a financial
asset or a group of financial assets is impaired. An impairment exists if one or more events that occurred after
the initial recognition of the asset have an impact on the estimated future cash flows of the financial asset or the
group of financial assets that can be reliably estimated. Evidence of impairment may include indications that a
debtor or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or
principal payments, the probability that they will enter bankruptcy or other financial reorganisation and
observable data indicating that there is a measurable decrease in the estimated future cash flows, such as
changes in arrears or economic conditions that correlate with defaults.
Financial Assets Carried at Amortised Cost

For financial assets carried at amortised cost, the Group first assesses whether impairment exists individually for
financial assets that are individually significant, or collectively for financial assets that are not individually
significant. If the Group determines that no objective evidence of impairment exists for an individually assessed
financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit
risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for
impairment and for which an impairment loss is, or continues to be, recognised are not included in a collective
assessment of impairment.
The amount of any impairment loss identified is measured as the difference between the assets carrying amount
and the present value of estimated future cash flows (excluding future credit losses that have not yet been
incurred). The present value of the estimated future cash flows is discounted at the financial assets original
effective interest rate (i.e., the effective interest rate computed at initial recognition).
The carrying amount of the asset is reduced through the use of an allowance account and the loss is recognised
in the statement of profit or loss. Interest income continues to be accrued on the reduced carrying amount and
is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the
impairment loss. Loans and receivables together with any associated allowance are written off when there is no
realistic prospect of future recovery and all collateral has been realised or has been transferred to the Group.
If, in a subsequent period, the amount of the estimated impairment loss increases or decreases because of an
event occurring after the impairment was recognised, the previously recognised impairment loss is increased or
reduced by adjusting the allowance account. If a write-off is later recovered, the recovery is credited to
administrative expenses in the statement of profit or loss.

Financial Liabilities
Initial Recognition and Measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value plus, in the case of loans and borrowings, directly
attributable transaction costs. The Groups financial liabilities mainly include other payables.
Subsequent Measurement
The subsequent measurement of financial liabilities depends on their classification as follows:
Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost,
using the effective interest rate method unless the effect of discounting would be immaterial, in which case they
are stated at cost. Gains and losses are recognised in the statement of profit or loss when the liabilities are
derecognised as well as through the effective interest rate method amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the effective interest rate. The effective interest rate amortisation is included in
finance costs in the statement of profit or loss.
Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if there are acquired for the purpose of repurchasing in the
near term. Gains and losses on liabilities held for trading are recognised in the statement of profit or loss.
Financial liabilities designated upon initial recognition as at fair value through profit or loss are designated at
the date of initial recognition and only if the criteria in HKAS 39 are satisfied.
Derecognition of Financial Liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled, or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a
derecognition of the original liability and a recognition of a new liability, and the difference between the
respective carrying amounts is recognised in the statement of profit or loss.
Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial
position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention
to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

Cash and Cash Equivalents
For the purpose of the consolidated statements of cash flow, cash and cash equivalents comprise cash on hand
and demand deposits, and short-term highly liquid investments that are readily convertible into known amounts
of cash, are subject to an insignificant risk of changes in value, and have a short maturity when acquired, less
bank overdrafts which are repayable on demand and form an integral part of the Groups cash management.
For the purpose of the statement of financial position, cash and cash equivalents comprise cash on hand and at
banks, including term deposits, which are not restricted as to use.
Provisions
A provision is recognised when a present obligation (legal or constructive) has arisen as a result of a past event
and it is probable that a future outflow of resources will be required to settle the obligation, provided that a
reliable estimate can be made of the amount of the obligation.
When the effect of discounting is material, the amount recognised for a provision is the present value at the end
of the reporting period of the future expenditures expected to be required to settle the obligation. The increase
in the discounted present value amount arising from the passage of time is included in finance costs in the
statement of profit or loss.
Income Tax
Income tax comprises current and deferred tax. Income tax relating to items recognised outside profit or loss is
recognised outside profit or loss, either in other comprehensive income or directly in equity.
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities, based on tax rates (and tax laws) that have been enacted or substantively enacted by the
end of the reporting period, taking into consideration interpretations and practices prevailing in the countries in
which the Group operates.
Deferred tax is provided, using the liability method, on all temporary differences at the end of the reporting
period between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
in respect of taxable temporary differences associated with investments in subsidiaries, when the timing of
the reversal of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.

Income Tax (continued)
Deferred tax assets are recognised for all deductible temporary differences, the carryforward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, the carryforward of unused
tax credits and unused tax losses can be utilised, except:
when the deferred tax asset relating to the deductible temporary differences arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of
the transaction, affects neither the accounting profit nor taxable profit or loss; and
in respect of deductible temporary differences associated with investments in subsidiaries, deferred tax
assets are only recognised to the extent that it is probable that the temporary differences will reverse in
the foreseeable future and taxable profit will be available against which the temporary differences can be
utilised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at the end of each reporting
period and are recognised to the extent that it has become probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the end of the reporting period.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.
Revenue Recognition
Revenue is recognised when it is probable that the economic benefits will flow to the Group and when the
revenue can be measured reliably, on the following bases:
(a) rental revenue from outdoor advertising spaces, on a time proportion basis over the terms of the
agreements;
(b) interest income, on an accrual basis using the effective interest method by applying the rate that exactly
discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter
period, when appropriate to the net carrying amount of the financial asset; and
(c) dividend income, when the shareholders right to receive payment has been established.

Deferred Income
Cumulative billings in excess of revenue attributable to the current year are recorded as deferred income.
Share-based Payments
The Company operates a share option scheme for the purpose of providing incentives and rewards to eligible
participants who contribute to the success of the Groups operations. Employees (including directors) of the
Group receive remuneration in the form of share-based payments, whereby employees render services as
consideration for equity instruments (equity-settled transactions).
The cost of equity-settled transactions with employees is measured by reference to the fair value at the date at
which they are granted. The fair value is determined by using the Black-Scholes model, further details of which
are given in note 23 to the financial statements.
The cost of equity-settled transactions is recognised in employee benefit expense, together with a
corresponding increase in equity, over the period in which the performance and/or service conditions are
fulfilled. The cumulative expense recognised for equity-settled transactions at the end of each reporting period
until the vesting date reflects the extent to which the vesting period has expired and the Groups best estimate
of the number of equity instruments that will ultimately vest. The charge or credit to the statement of profit or
loss for a period represents the movement in the cumulative expense recognised as at the beginning and end of
that period.
Service and non-market performance conditions are not taken into account when determining the grant date
fair value of awards, but the likelihood of the conditions being met is assessed as part of the Groups best
estimate of the number of equity instruments that will ultimately vest. Market performance conditions are
reflected within the grant date fair value. Any other conditions attached to an award, but without an associated
service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the
fair value of an award and lead to an immediate expensing of an award unless there are also service and/or
performance conditions.
For awards that do not ultimately vest because non-market performance and/or service condition have not been
met, no expense is recognised. Where awards include a market or non-vesting condition, the transaction are
treated as vesting irrespective of whether or not the market or non-vesting condition is satisfied, provided that
all other performance and/or service conditions are satisfied.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms
had not been modified, if the original terms of the award are met. In addition, an expense is recognised for any
modification, which increases the total fair value of the share-based payments, or is otherwise beneficial to the
employee as measured at the date of modification.

Share-based Payments (continued)
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. This includes any award where non-vesting
conditions within the control of either the Group or the employee are not met. However, if a new award is
substituted for the cancelled award, and is designated as a replacement award on the date that it is granted, the
cancelled and new awards are treated as if they were a modification of the original award, as described in the
previous paragraph.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of earnings
per share.
The cost of cash-settled transactions is measured initially at fair value at the grant date using the Black-Scholes
formula, taking into account the terms and conditions upon which the instruments were granted (note 23). The
fair value is expensed over the period until the vesting date with recognition of a corresponding liability. The
liability is measured at the end of each reporting period up to and including the settlement date, with changes
in fair value recognised in the statement of profit or loss.
Other Employee Benefits

The Group operates a defined contribution Mandatory Provident Fund retirement benefit scheme (the MPF
Scheme) under the Mandatory Provident Fund Schemes Ordinance, for those employees who are eligible to
participate in the MPF Scheme. Contributions are made based on a percentage of the employees basic salaries,
and are charged to the statement of profit or loss as they become payable in accordance with the rules of the
MPF Scheme. The assets of the MPF Scheme are held separately from those of the Group in an independently
administered fund. The Groups employer contributions vest fully with the employees when contributed into the
MPF Scheme, except for the Groups employer voluntary contributions, which are refunded to the Group when
the employee leaves employment prior to the contributions vesting fully, in accordance with the rules of the
MPF Scheme.
The employees of the Groups subsidiary which operates in Mainland China are required to participate in a
central pension scheme operated by the local municipal government. This subsidiary is required to contribute a
certain percentage of its payroll costs to the central pension scheme. The contributions are charged to the
statement of profit or loss as they become payable in accordance with the rules of the central pension scheme.
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, i.e.,
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalised
as part of the cost of those assets. The capitalisation of such borrowing costs ceases when the assets are
substantially ready for their intended use or sale. Investment income earned on the temporary investment of
specific borrowings spending their expenditure on qualifying assets is deducted from the borrowing costs
capitalised. All other borrowing costs are expensed in the period in which they are incurred.

Dividends
Final and special dividends are recognised as a liability when they are approved by the shareholders in a general
meeting. In prior years, final and special dividends proposed by the directors were classified as a separate
allocation of retained earnings within the equity section of the statement of financial position, until they have
been approved by the shareholders in a general meeting. Following the implementation of the Hong Kong
Companies Ordinance (Cap. 622), proposed final and special dividends are disclosed in the notes to these
financial statements.
Interim dividends are simultaneously proposed and declared, because the Companys memorandum and articles
of association grant the directors the authority to declare interim dividends. Consequently, interim dividends are
recognised immediately as a liability when they are proposed and declared.
Foreign Currencies
These financial statements are presented in Hong Kong dollars, which is the Companys functional and
presentation currency. Each entity in the Group determines its own functional currency and items included in
the financial statements of each entity are measured using that functional currency. Foreign currency
transactions recorded by entities in the Group are initially recorded using their respective functional currency
rates prevailing at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies
are translated at the functional currency rates of exchange ruling at the end of the reporting period. Differences
arising on settlement or translation of monetary items are recognised in the statement of profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value was measured. The gain or loss
arising on translation of a non-monetary item measured at fair value is treated in line with the recognition of the
gain or loss on change in fair value of the item (i.e., translation differences on the item whose fair value gain or
loss is recognised in other comprehensive income or profit or loss is also recognised in other comprehensive
income or profit or loss, respectively).
The functional currency of the overseas subsidiary of the Company is a currency other than the Hong Kong
dollar. As at the end of the reporting period, the assets and liabilities of the entity are translated into Hong Kong
dollars at the exchange rate prevailing at the end of the reporting period and its statement of profit or loss is
translated into Hong Kong dollars at the weighted average exchange rate for the year. The resulting exchange
differences are recognised in other comprehensive income and accumulated in a separate component of equity.
On disposal of a foreign entity, the component of other comprehensive income relating to that particular foreign
operation is recognised in the statement of profit or loss.
For the purpose of the consolidated statement of cash flows, the cash flows of the overseas subsidiary are
translated into Hong Kong dollars at the exchange rates ruling at the dates of the cash flows. Frequently
recurring cash flows of the overseas subsidiary which arise throughout the year are translated into Hong Kong
dollars at the weighted average exchange rate for the year.
4. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

The preparation of the Groups financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and their
accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and
estimates could result in outcomes that could require a material adjustment to the carrying amounts of the
assets or liabilities affected in the future.
In the process of applying the Groups accounting policies, management has made the following judgements
and estimations. The key assumptions concerning the future and other key sources of judgements and
estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.
Impairment of Concession Rights

The Group assesses whether there are any indicators of impairment for concession rights at the end of each
reporting period. Concession rights are tested for impairment when there are indicators that the carrying
amounts may not be recoverable. An impairment exists when the carrying value of an asset or a cash-generating
unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use.
When value in use calculations are undertaken, management must estimate the expected future cash flows from
the asset or cash-generating unit and choose a suitable discount rate in order to calculate the present value of
those cash flows. The carrying amount of concession rights at 31 December 2015 was HK$1,857,462,000 (2014:
HK$1,867,726,000).
Provision for Impairment of Trade and Other Receivables

The Group estimates the provision for impairment of trade and other receivables by assessing the recoverability
based on credit history and prevailing market conditions. This requires the use of estimates and judgements.
Allowances are applied to trade and other receivables where events or changes in circumstances indicate that
the balances may not be collectible. Where the expectation is different from the original estimate, the difference
will affect the carrying amounts of trade and other receivables and thus the impairment loss in the period in
which the estimate is changed. The Group reassesses the impairment allowances at the end of each year. At 31
December 2015, the provision for impairment of trade and other receivables was HK$31,418,000 (2014:
HK$21,218,000).
Withholding Taxes Arising from the Distributions of Dividends

The Groups determination as to whether to accrue for withholding taxes from the distribution of dividends from
a subsidiary in the PRC according to the relevant tax jurisdictions is subject to judgement on the timing of the
payment of the dividends. Withholding tax is provided for the profits of the subsidiary in the PRC which the
Group considers it probable to be distributed in the foreseeable future. Further details are included in note 21 to
the financial statements.
5. SEGMENT INFORMATION
The outdoor advertising business is the only major reportable operating segment of the Group which comprises
the display of advertisements on street furniture. Accordingly, no further business segment information is
provided.
In determining the Groups geographical segments, revenues and results are attributed to the segments based
on the locations of the customers, and assets are attributed to the segments based on the locations of the assets.
As the Groups major operations and markets are all located in the PRC, no further geographical segment
information is provided.
6. REVENUE AND OTHER INCOME

Revenue represents the contract value of the display of advertisements on bus shelters, net of commissions and
discounts, in the PRC.
An analysis of revenue and other income is as follows:
2015 2014
HK$000 HK$000
Revenue
Rental from outdoor advertising spaces 1,832,723 1,760,676
Other income
Interest income 9,906 20,319
7. PROFIT BEFORE TAX

The Groups profit before tax is arrived at after charging/(crediting):
2015 2014
Notes HK$000 HK$000
Cost of services provided 288,460 305,960

Operating lease rentals on bus shelters 389,459 398,124
Cost of services in a bus shelter joint-operation arrangement* 5,418 2,739
Amortisation of concession rights 15 344,990 327,716
Cost of sales 1,028,327 1,034,539
Impairment losses of trade receivables recognised 17 16,426 3,992
Auditors remuneration 2,902 2,704
Depreciation of items of property, plant and equipment 14 11,950 10,251
Impairment and write-down of concession rights 2,470 10,474
Loss on disposal of concession rights 3,467 2,335
Loss on disposal of items of property, plant and equipment 625 18
Operating lease rentals on buildings 37,217 25,999
Employee benefit expense (including directors
and chief executives remuneration):
Wages and salaries 183,609 188,019
Cash-settled share-based payments
Reversal of previous years** (8,960)
Current year 2,131 8,090
Equity-settled share option expense 2,219 470
Pension scheme contributions 20,069 17,452
199,068 214,031
Foreign exchange losses, net 1,999 2,419
Interest income (9,906) (20,319)
* The Group operated certain bus shelters jointly with an independent third party under a profit sharing arrangement. The Group has the
primary responsibility for providing services to the customers and acts as a principal in the arrangement. The Group recognised revenue
on a gross basis. The cost of services represented the costs paid by the Group under this arrangement.
** As certain performance target was not met, the cash-settled share-based payment expenses recognised in previous years amounting to
HK$8,960,000 were reversed during the current year.
8. DIRECTORS AND CHIEF EXECUTIVES REMUNERATION

Directors and chief executives remuneration for the year, disclosed pursuant to the Listing Rules, section 383(1)
(a), (b), (c) and (f) of the Hong Kong Companies Ordinance and Part 2 of the Companies (Disclosure of
Information about Benefits of Directors) Regulation, is as follows:
Group
2015 2014
HK$000 HK$000
Fees 4,478 4,479

Other emoluments:
Salaries, allowances and benefits in kind 21,746 22,979
Performance-related bonuses 1,908 1,789
Cash-settled share-based payments (6,829) 8,090
Pension scheme contributions 161 144
18,007 33,260
22,485 37,739
During the year, certain directors were granted share options, in respect of their services to the Group, under the
share option scheme of the Company, further details of which are set out in note 23 to the financial statements.
The fair value of such options, which has been recognised in the statement of profit or loss over the vesting
period, was determined as at the date of grant and the amount included in the financial statements for the
current year is included in the above directors and chief executives remuneration disclosures.
(a) Independent Non-executive Directors

The fees paid to independent non-executive directors were as follows:
2015 2014
HK$000 HK$000
Mr. Desmond Murray 280 280

Ms. Leonie Ki Man Fung 140 140
Mr. Wang Shou Zhi 140 140
Mr. Thomas Manning 140 140
700 700
Directors fees paid to Mr. Desmond Murray were for his role as an independent non-executive director and
the Chairman of the Audit Committee. There were no other emoluments payable to the independent non-
executive directors during the year (2014: Nil).
8. DIRECTORS AND CHIEF EXECUTIVES REMUNERATION (continued)

(b) Executive Directors, Non-executive Directors and Alternate Directors
Salaries, Equity-
allowances Performance- settled Cash-settled Pension
and benefits related share option share-based scheme Total
Fees in kind bonuses expense payments contributions emoluments
HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000
2015
Executive directors:
Mr. Mark Thewlis
(relinquished his
position with effect
from 1 January 2016) 740 6,218 342 (109) 18 7,209
Mr. Han Zi Jing 714 5,374 487 444 (2,240) 18 4,797
Mr. Zhang Huai Jun 910 3,227 666 222 (2,240) 97 2,882
Mr. Teo Hong Kiong 714 4,148 282 222 (2,240) 18 3,144
3,078 18,967 1,777 888 (6,829) 151 18,032
Non-executive directors:
Mr. William Eccleshare 140 140
Mr. Peter Cosgrove 280 500 780
Mr. Cormac OShea 140 140
Mr. Zhu Jia 140 140
700 500 1,200
Alternate director:
Mr. Zou Nan Feng 2,279 131 133 10 2,553
3,778 21,746 1,908 1,021 (6,829) 161 21,785
Note:
Salaries, allowances and benefits in kind paid to Mr. Mark Thewlis in 2015 included amounts borne by Clear Channel International Limited
of HK$1,854,905 (2014: HK$1,854,905).
8. DIRECTORS AND CHIEF EXECUTIVES REMUNERATION (continued)

(b) Executive Directors, Non-executive Directors and Alternate Director (continued)
Salaries, Equity-
allowances Performance- settled Cash-settled Pension
and benefits related share option share-based scheme Total
Fees in kind bonuses expense payments contributions emoluments
HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000
2014
Executive directors:
Mr. Mark Thewlis 740 6,513 342 4,190 13 11,798
Mr. Han Zi Jing 714 5,940 493 97 1,300 17 8,561
Mr. Zhang Huai Jun 910 3,546 670 60 1,300 87 6,573
Mr. Teo Hong Kiong 714 4,161 284 56 1,300 17 6,532
3,078 20,160 1,789 213 8,090 134 33,464
Non-executive directors:
Mr. William Eccleshare 140 140
Mr. Peter Cosgrove 280 500 780
Mr. Cormac OShea
(appointed as an
alternate director for
Mr. Jonathan Bevan
with effect from
3 June 2014 and
re-designated as a
non-executive director
with effect from
15 July 2014) 65 65
Mr. Zhu Jia 140 140
Mr. Jonathan Bevan
(resigned with effect
from 15 July 2014) 76 76
701 500 1,201
Alternate director:
Mr. Zou Nan Feng 2,319 45 10 2,374
3,779 22,979 1,789 258 8,090 144 37,039
There was no arrangement under which a director waived or agreed to waive any remuneration during the
year.
During the year, performance-related bonuses of HK$1,908,000 were paid to directors (2014:
HK$1,789,000). There was no arrangement under which a director or the chief executive waived or agreed
to waive any remuneration during the year (2014: Nil). In addition, no emoluments were paid by the Group
to the directors as an inducement to join, or upon joining the Group, or as a compensation for loss of office
(2014: Nil).
9. FIVE HIGHEST PAID EMPLOYEES

The five highest paid employees during the year included four (2014: four) directors, details of whose
remuneration are set out in note 8 above. Details of the remuneration of the remaining one (2014: one) non-
director, highest paid employee for the year are as follows:
2015 2014
HK$000 HK$000
Salaries, allowances and benefits in kind 2,662 2,467

Performance-related bonuses
Equity-settled share option expense 35
2,778 2,573
The number of non-director, highest paid employee whose remuneration fell within the following band is as
follows:
Number of employees
2015 2014
Nil to HK$1,000,000
HK$1,000,001 to HK$1,500,000
HK$1,500,001 to HK$2,000,000
HK$2,000,001 to HK$2,500,000
HK$2,500,001 to HK$3,000,000 1 1
1 1
10. FINANCE COSTS
2015 2014
HK$000 HK$000
Other finance costs 2,247 3,732

11. INCOME TAX

Hong Kong profits tax has not been provided as the Group had no assessable profits arising in Hong Kong during
the year. Taxes on profits assessable in the PRC have been calculated at the prevailing tax rates, based on
existing legislation, interpretations and practices in respect thereof.
2015 2014
HK$000 HK$000
Current Hong Kong profits tax

Current PRC corporate income tax 110,465 88,036
Deferred tax 9,588 20,052
Total tax charge for the year 120,053 108,088
A reconciliation of the tax expense applicable to profit before tax using the statutory rates for the jurisdictions in
which the Company and its subsidiaries are domiciled to the tax expense at the effective tax rate is as follows:
2015 2014
HK$000 HK$000
Profit before tax 443,628 387,478

Tax at the applicable statutory tax rate 112,626 98,542
Income not subject to tax (598) (1,880)
Realised exchange loss from an intra-group loan (133) (606)
Expenses not deductible for tax 2,062 2,963
Tax losses not recognised 3,289 4,922
Effect of withholding tax on the distributable profits of the Groups PRC
subsidiary 2,807 4,147
Tax charge at the Groups effective rate of 27.1 % (2014: 27.9%) 120,053 108,088
According to the Enterprise Income Tax Law of the PRC effective on 1 January 2008, WHA Joint Venture, a
subsidiary of the Company established in the Hainan Special Economic Zone of the PRC, was subject to a
corporate income tax rate of 25% (2014: 25%) for the head office and its branches on its assessable profits arising
in the PRC for the year 2015.
In accordance with the Enterprise Income Tax Law of the PRC effective on 1 January 2008, a 10% (or a lower rate
if there is a tax treaty between Mainland China and the jurisdiction of the foreign investors) withholding tax is
levied on dividends declared to foreign investors from the foreign investment enterprises established in
Mainland China. The requirement is effective from 1 January 2008 and applies to earnings after 31 December
2007. The Group is therefore liable for withholding taxes on dividends distributed by WHA Joint Venture, a
subsidiary of the Company established in the Hainan Special Economic Zone of the PRC, in respect of earnings
generated from 1 January 2008. As at 31 December 2015, the Group recognised a deferred tax liability of
HK$20,703,000 (31 December 2014: HK$23,128,000) in respect of the withholding taxes on future dividend
distribution by WHA Joint Venture.
12. DIVIDEND
2015 2014
HK$000 HK$000
Special dividend Nil (2014: HK56 cents) per ordinary share 300,943
Proposed final HK16 cents (2014: HK15 cents) per ordinary share 86,672 80,610
86,672 381,553
At the Board meeting held on 3 February 2016, the directors proposed a final dividend of HK16 cents per share
(2014: HK15 cents per share) for the year ended 31 December 2015. This final dividend is equivalent to
HK$86,672,080 (2014: HK$81,255,075) based on the 541,700,500 (2014: 541,700,500) outstanding shares. Subject
to the approval by the shareholders at the forthcoming annual general meeting, the proposed dividend will be
payable on Wednesday, 13 July 2016 to the shareholders registered on the Register of Members on Wednesday,
8 June 2016.
13. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT
The calculation of the basic earnings per share amount is based on the profit for the year attributable to ordinary
equity holders of the parent, and the weighted average number of ordinary shares in issue during the year.
The calculation of the diluted earnings per share amount is based on the profit for the year attributable to
ordinary equity holders of the parent. The weighted average number of ordinary shares used in the calculation is
the number of ordinary shares in issue during the year, as used in the basic earnings per share calculation, and
the weighted average number of ordinary shares assumed to have been issued at no consideration on the
deemed exercise or conversion of all the dilutive potential ordinary shares into ordinary shares.
The calculations of basic and diluted earnings per share are based on:
2015 2014
HK$000 HK$000
Earnings
Profit attributable to ordinary equity holders of the parent,
used in the basic earnings per share calculation 280,522 240,214
13. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT (continued)
Number of shares
2015 2014
Shares
Weighted average number of ordinary shares in issue during the year,
used in the basic earnings per share calculation 540,326,000 536,795,000
Effect of dilution weighted average number of ordinary shares:

Share options 926,000 3,146,500
541,252,000 539,941,500
14. PROPERTY, PLANT AND EQUIPMENT
Leasehold Furniture and Motor Construction

improvements equipment vehicles in progress Total
HK$000 HK$000 HK$000 HK$000 HK$000
31 December 2015
At 31 December 2014 and at 1 January 2015:

Cost 27,281 19,447 43,850 90,578
Accumulated depreciation (23,178) (10,598) (30,314) (64,090)
Net carrying amount 4,103 8,849 13,536 26,488
At 1 January 2015, net of accumulated
depreciation 4,103 8,849 13,536 26,488
Additions 7,918 8,658 4,867 48,572 70,015
Transfer from construction in progress 26,460 (26,460)
Disposals (641) (4) (645)
Depreciation provided during the year (3,321) (3,386) (5,243) (11,950)
Transfers (note 15) (20,368) (20,368)
Exchange realignment (705) (483) (558) (1,027) (2,773)
At 31 December 2015, net of accumulated
depreciation 34,455 12,997 12,598 717 60,767
At 31 December 2015:
Cost 59,880 21,231 42,846 717 124,674
Net carrying amount 34,455 12,997 12,598 717 60,767
14. PROPERTY, PLANT AND EQUIPMENT (continued)
Leasehold Furniture and Motor Construction

improvements equipment vehicles in progress Total
HK$000 HK$000 HK$000 HK$000 HK$000
31 December 2014
At 1 January 2014:
Cost 27,318 22,327 41,259 856 91,760
Net carrying amount 4,534 8,685 13,564 856 27,639
At 1 January 2014, net of accumulated
depreciation 4,534 8,685 13,564 856 27,639
Additions 1,304 3,577 5,934 42,263 53,078
Disposals (187) (42) (229)
Depreciation provided during the year (1,637) (3,035) (5,579) (10,251)
Transfers (note 15) (42,758) (42,758)
Exchange realignment (98) (191) (341) (361) (991)
At 31 December 2014, net of accumulated
depreciation 4,103 8,849 13,536 26,488
Cost 27,281 19,447 43,850 90,578
Net carrying amount 4,103 8,849 13,536 26,488
15. CONCESSION RIGHTS
HK$000
31 December 2015
Cost at 1 January 2015, net of accumulated amortisation 1,867,726

Additions 406,788
Transfer from construction in progress (note 14) 20,368
Disposals, impairment, write-off and write-down (6,143)
Amortisation during the year (344,990)
Exchange realignment (86,287)
At 31 December 2015 1,857,462
Cost 4,591,414
Accumulated amortisation (2,733,952)
Net carrying amount 1,857,462
31 December 2014
At 1 January 2014:
Cost 4,276,125
Cost at 1 January 2014, net of accumulated amortisation 1,795,201
Additions 412,411
Transfer from construction in progress (note 14) 42,758
Disposals, impairment, write-off and write-down (12,847)
Amortisation during the year (327,716)
Exchange realignment (42,081)
At 31 December 2014 1,867,726
Cost 4,553,751
Note:
All of the Groups bus shelter concession rights are granted by entities authorised by local governmental
agencies in the PRC which have control over the construction and management of bus shelters. Under these
concessions, the Group assumes responsibility for the construction and on-going maintenance of the bus
shelters and pays annual fixed fees to the entities authorised by local governmental agencies. In exchange, the
Group has the exclusive rights to sell advertising spaces on these bus shelters during the term of the
concessions.
15. CONCESSION RIGHTS (continued)

The Groups bus shelter concession contracts have initial terms of five to twenty years. As at 31 December 2015,
the weighted average remaining term of the concession rights currently held by the Group was approximately
seven years. In terms of renewal rights, approximately 54% of the concession rights held by the Group, based on
the total number of bus shelters granted to the Group, grant the Group the priority purchase to renew the
concession contracts provided that the terms offered by the Group are no less favourable than those offered by
competing tenders. Some of the concession contracts also allow the Group to extend the terms of the contracts
before expiry.
16. LONG-TERM PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES

Long-term prepayments amounting to RMB45,809,000 (equivalent to HK$54,678,000) (31 December 2014:
RMB45,809,000 (equivalent to HK$57,247,000)) have been placed with certain independent third parties in
connection with the extension and renewal of certain of the Groups bus shelter concession rights in the PRC.
Long-term prepayment as at 31 December 2015 also included a deposit amounting to RMB3,150,000 (equivalent
to HK$3,760,000) (31 December 2014: RMB Nil) made to an independent third party for the purchase of bus
shelters.
The balance as at 31 December 2015 also included a non-current portion of a prepaid bus shelter lease payment
amounting to HK$7,824,000 (31 December 2014: HK$10,712,000) and a long-term rental deposit of
HK$22,498,000 (31 December 2014: HK$23,555,000).
17. TRADE RECEIVABLES

The Groups trading terms with its customers are mainly on credit, except for new customers, where advanced
payments are normally required. The credit period is generally 90 days extending up to 180 days for major
customers. Overdue balances are reviewed regularly by senior management. The Groups trade receivables
relate to a diverse number of customers and are non-interest-bearing.
An ageing analysis of the trade receivables as at the end of the reporting period, based on the revenue
recognition date, is as follows:
2015 2014
HK$000 HK$000
Current to 90 days 345,473 293,759

91 days to 180 days 237,718 263,559
181 days to 360 days 112,647 82,472
Over 360 days 22,737 13,310
718,575 653,100
Less: Provision for impairment of trade receivables (31,418) (21,218)
Total trade receivables, net 687,157 631,882
17. TRADE RECEIVABLES (continued)

The movements in provision for impairment of trade receivables are as follows:
2015 2014
HK$000 HK$000
At 1 January 21,218 23,783

Impairment losses recognised (note 7) 16,426 3,992
Amount written off as uncollectible (6,226) (6,557)
At 31 December 31,418 21,218
The above provision for impairment of trade receivables is a provision to cover balances for which the Group
may not be able to recover full amounts from the customers. The Group does not hold any collateral or other
credit enhancements over these balances.
The ageing analysis of the trade receivables that are not considered to be impaired is as follows:
2015 2014
HK$000 HK$000
Neither past due nor impaired 583,191 554,873

Less than 3 months past due 83,892 68,368
Over 3 months past due 20,074 8,641
687,157 631,882
Receivables that were neither past due nor impaired relate to a diverse number of customers for whom there
was no recent history of default.
Receivables that were past due but not impaired relate to a number of independent customers that have a good
track record with the Group. Based on past experience, the directors of the Company are of the opinion that no
provision for impairment is necessary in respect of these balances as there has not been a significant change in
credit quality and the balances are still considered fully recoverable.
18. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES

The balance of prepayments, deposits and other receivables for the year ended 31 December 2015 included a
receivable from Hainan White Horse Advertising Co., Ltd. (Hainan White Horse), the non-controlling
shareholder of WHA Joint Venture, amounting to HK$95,414,000 (31 December 2014: HK$66,487,000), which are
unsecured, interest-free and has no fixed terms of repayment.
19. DUE FROM RELATED PARTIES
2015 2014
HK$000 HK$000
Guangdong White Horse Advertising Company Limited (GWH) 2,064 88,575

Hainan White Horse Media Advertising Company Limited (WHM) 104,690
106,754 88,575
The balances with the related parties are unsecured, interest-free and repayable on demand.
An ageing analysis of the amounts due from GWH and WHM as at the end of the reporting period, based on the
revenue recognition date, is as follows:
2015 2014
HK$000 HK$000
Current to 90 days 83,642 76,793

91 days to 180 days 21,511 10,980
Over 180 days 1,601 802
106,754 88,575
20. CASH AND CASH EQUIVALENTS, PLEDGED DEPOSITS AND RESTRICTED CASH
At the end of the reporting period, the Groups cash and bank balances, pledged deposits and restricted cash
denominated in Renminbi (RMB) and in Hong Kong dollars (HK$) amounted to HK$484,163,000 (2014:
HK$796,233,000) and HK$206,689,000 (2014: HK$254,968,000), respectively. The RMB is not freely convertible
into other currencies, however, under Mainland Chinas Foreign Exchange Control Regulations and
Administration of Settlement, Sale and Payment of Foreign Exchange Regulations, the Group is permitted to
exchange RMB for other currencies through banks authorised to conduct foreign exchange business.
All of the Groups bank balances and pledged deposits are placed with registered banking institutions in the PRC
and Hong Kong. The Groups policy is to spread bank balances (including pledged deposits) among various
creditworthy banks with no recent history of default. As at 31 December 2015, the Group maintained less than
20% of the Groups total bank balances in any one bank.
Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term time deposits are
placed for varying periods depending on the immediate cash requirements of the Group, and earn interest at
the respective short-term time deposit rates. The bank balances and pledged deposits are deposited with
creditworthy banks with no recent history of default. The carrying amounts of the cash and cash equivalents and
the pledged deposits approximate to their fair values.
As at 31 December 2015, a bank balance of RMB1,282,000 (equivalent to approximately HK$1,530,000) was

frozen by one of the financial institutions which has commenced legal proceedings against the Companys
subsidiary as disclosed in note 28 to the financial statements. The directors of the Company are of the view that
the dispute will not have any material impact on the consolidated financial statements of the Group.
21. DEFERRED TAX

The movements in deferred tax liabilities and assets during the year are as follows:
Deferred tax liabilities
2015
Depreciation
and amortisation
allowance in
excess of related
depreciation and
amortisation and
other temporary
differences Withholding tax Total
HK$000 HK$000 HK$000
At 1 January 82,113 23,128 105,241

Deferred tax charged to the statement of
profit and loss during the year (note 11) 6,781 2,807 9,588
Reclassified to tax payable (4,688) (5,232) (9,920)
At 31 December 84,206 20,703 104,909
2014
Depreciation
and amortisation
allowance in
excess of related
depreciation and
amortisation and
other temporary
differences Withholding tax Total
HK$000 HK$000 HK$000
At 1 January 53,853 26,537 80,390

Deferred tax charged to the statement of
profit and loss during the year (note 11) 15,823 4,147 19,970
Reclassified from/(to) tax payable 12,437 (7,556) 4,881
At 31 December 82,113 23,128 105,241
21. DEFERRED TAX (continued)

Deferred tax assets
Deductible Deductible
temporary temporary
differences differences
2015 2014
HK$000 HK$000
At 1 January 82
Deferred tax (charged)/credited to the statement of profit and loss
during the year (note 11) (82)
At 31 December
The Group has tax losses arising in Hong Kong. Deferred tax assets have not been recognised in respect of the
tax losses since the possibility of utilising such amount is considered remote.
22. SHARE CAPITAL
2015 2014
HK$000 HK$000
Shares
Issued and fully paid:

541,700,500 ordinary shares (2014: 537,398,500) of HK$0.10 each
(2014: HK$0.10) 54,170 53,740
During the year, the increase in share capital represented the subscription rights attaching to 4,302,000 share
options exercised at the subscription price of HK$2.73 per share, resulting in the issue of 4,302,000 shares of
HK$0.1 each for a total cash consideration, before expenses, of HK$11,744,000. An amount of HK$6,375,000 was
transferred from the share option reserve to the share premium account upon the exercise of the share options.
23. SHARE OPTION SCHEMES AND CASH-SETTLED SHARE-BASED PAYMENTS

Prior to 28 November 2008, the Company operated, among others, a share option scheme (the Old Scheme)
for the purpose of providing incentives and rewards to eligible participants who contributed to the Groups
operations. The Old Scheme became effective on 28 November 2001 and expired on 28 November 2008, after
then no further options had been granted under the Old Scheme. Options which were granted during the life of
the Old Scheme shall continue to be exercisable in accordance with their terms of issue and the last remaining
batch of these options expired on 29 June 2014. Accordingly, there are no outstanding options under the Old
Scheme.
23. SHARE OPTION SCHEMES AND CASH-SETTLED SHARE-BASED PAYMENTS (continued)

At the annual general meeting of the Company on 13 May 2009, an ordinary resolution was passed to approve a
new share option scheme (the New Scheme). The purpose of the New Scheme is to enable the Company to
grant options to eligible participants of the Company or any subsidiaries of the Company, as determined by the
board of directors in recognition of their contributions to the Group. Under the New Scheme, the directors may,
at their discretion, offer to grant options to any employees, directors or consultants of any company in the
Group. The New Scheme became effective on 19 May 2009 and, unless otherwise cancelled or amended, will
remain in force for 10 years from that date.
The total number of shares which may be issued upon exercise of all options to be granted under the New
Scheme shall be subject to a maximum limit of 10% of the shares in issue as at 13 May 2009 (excluding shares
which may be issued upon exercise of options granted under the Old Scheme, whether such options are
exercised, outstanding, cancelled or lapsed), unless the Company obtains an approval from shareholders in a
general meeting to refresh this 10% limit in accordance with the Listing Rules. Options lapsed in accordance
with the terms of the New Scheme will not be counted for the purpose of calculating such 10% limit. The limit
on the number of shares which may be issued upon exercise of all outstanding options granted and yet to be
exercised under the New Scheme and any other share option schemes of the Company and/or any of its
subsidiaries must not exceed 30% of the shares of the Company in issue from time to time, and no options may
be granted under the New Scheme or any other share option schemes of the Company and/or any of its
subsidiaries if that will result in such 30% limit being exceeded.
No option may be granted to any person such that the total number of shares issued and to be issued upon the
exercise of options granted and to be granted to such person in any 12-month period up to the date of the latest
grant exceeds 1% of the issued share capital of the Company from time to time.
An option may be exercised in accordance with the respective terms of the New Scheme or Old Scheme at any
time during the option period. The option period was determined by the board of directors and communicated
to each grantee. The board of directors may provide restrictions on the period during which the options may be
exercised. There are no performance targets which must be achieved before any of the options can be exercised
except for the share options granted on 29 June 2007. Share options granted on 29 June 2007 (the 2007
Options) would not become vested unless the Company has achieved an average annual earnings per share
growth of 5% each year in the first three full financial years after the grant date. The vesting condition was not
met and the share option expenses of the 2007 Options were reversed in 2010.
The subscription price for the Companys shares under the New Scheme and the Old Scheme would be a price
determined by the board of directors and notified to each grantee. The subscription price would be the highest
of: (i) the nominal value of a share; (ii) the closing price of the shares as stated in the Hong Kong Stock
Exchanges daily quotation sheet on the date of grant, which must be a business day; and (iii) the average
closing price of the shares as stated in the Hong Kong Stock Exchanges daily quotation sheets for the five
business days immediately preceding the date of grant. An option shall be deemed to have been granted and
accepted by an eligible participant (as defined in the respective schemes) and to have taken effect when the
acceptance form as described in the respective schemes is completed, signed and returned by the grantee with
a remittance in favour of the Company of HK$1.00 by way of consideration for the grant.

As at 31 December 2015, the aggregate number of shares issuable under share options granted under the New
Scheme was 5,000,000, which represented approximately 0.92% of the Companys shares in issue as at that date.
The exercise in full of the outstanding share options would, under the present capital structure of the Company,
result in the issue of 5,000,000 additional ordinary shares of HK$0.10 each in the Company and proceeds, before
relevant share issue expenses, of approximately HK$47,700,000.
The maximum number of shares issuable under share options which may be granted to each eligible participant
under the New Scheme within any 12-month period up to the date of the latest grant is limited to 1% of the
shares of the Company in issue at any time. Any further grant of share options in excess of this limit is subject to
shareholders approval in a general meeting.
The following share options were outstanding under the Old Scheme and the New Scheme during the year:
Number of share options Price of the Companys shares ***

Immediately
Type of At the Granted Exercised Expired Forfeited Date of grant Exercise At grant before the At exercise
Name or category of share option beginning during during during during At the end of share Exercise price per date of exercise date of
participant scheme of the year the year the year the year the year of the year options* period share ** options date options
HK$ HK$ HK$ HK$
Director
Han Zi Jing The New Scheme 332 (332) 20/05/2009 21/05/2013 to 2.73 2.73 9.77 9.84
20/05/2016
The New Scheme 866,668 (866,668) 20/05/2009 21/05/2014 to 2.73 2.73 9.77 9.84
20/05/2016
The New Scheme 333,333 333,333 10/06/2015 11/06/2018 to 9.54 9.52

10/06/2022
The New Scheme 333,333 333,333 10/06/2015 11/06/2019 to 9.54 9.52

10/06/2022
The New Scheme 333,334 333,334 10/06/2015 11/06/2020 to 9.54 9.52

10/06/2022
867,000 1,000,000 (867,000) 1,000,000
Teo Hong Kiong The New Scheme 250,000 (250,000) 20/05/2009 21/05/2013 to 2.73 2.73 8.25 8.24
20/05/2016
The New Scheme 500,000 (500,000) 20/05/2009 21/05/2014 to 2.73 2.73 8.25 8.24
20/05/2016
The New Scheme 166,666 166,666 10/06/2015 11/06/2018 to 9.54 9.52

10/06/2022
The New Scheme 166,666 166,666 10/06/2015 11/06/2019 to 9.54 9.52

10/06/2022
The New Scheme 166,668 166,668 10/06/2015 11/06/2020 to 9.54 9.52

10/06/2022
750,000 500,000 (750,000) 500,000

Immediately
HK$ HK$ HK$ HK$
Director (continued)
Zhang Huai Jun The New Scheme 666 (666) 20/05/2009 21/05/2013 to 2.73 2.73 9.77 9.84
20/05/2016
The New Scheme 533,334 (533,334) 20/05/2009 21/05/2014 to 2.73 2.73 9.77 9.84
20/05/2016
The New Scheme 166,666 166,666 10/06/2015 11/06/2018 to 9.54 9.52

10/06/2022
The New Scheme 166,666 166,666 10/06/2015 11/06/2019 to 9.54 9.52

10/06/2022
The New Scheme 166,668 166,668 10/06/2015 11/06/2020 to 9.54 9.52

10/06/2022
534,000 500,000 (534,000) 500,000
Zou Nan Feng The New Scheme 400,000 (400,000) 20/05/2009 21/05/2013 to 2.73 2.73 9.77 9.84
20/05/2016
The New Scheme 100,000 100,000 10/06/2015 11/06/2018 to 9.54 9.52

10/06/2022
The New Scheme 100,000 100,000 10/06/2015 11/06/2019 to 9.54 9.52

10/06/2022
The New Scheme 100,000 100,000 10/06/2015 11/06/2020 to 9.54 9.52

10/06/2022
400,000 300,000 (400,000) 300,000

Immediately
HK$ HK$ HK$ HK$
Others
Members of senior The New Scheme 1,000 (1,000) 20/05/2009 21/05/2013 to 2.73 2.73 9.19 9.21
management and 20/05/2016
other employees
of the Group The New Scheme 1,750,000 (1,750,000) 20/05/2009 21/05/2014 to 2.73 2.73 9.19 9.21
20/05/2016
The New Scheme 899,994 899,994 10/06/2015 11/06/2018 to 9.54 9.52

10/06/2022
The New Scheme 899,994 899,994 10/06/2015 11/06/2019 to 9.54 9.52

10/06/2022
The New Scheme 900,012 900,012 10/06/2015 11/06/2020 to 9.54 9.52

10/06/2022
1,751,000 2,700,000 (1,751,000) 2,700,000
In aggregate The New Scheme 251,998 (251,998) 20/05/2009 21/05/2013 to 2.73 2.73 9.27 9.30
20/05/2016
The New Scheme 4,050,002 (4,050,002) 20/05/2009 21/05/2014 to 2.73 2.73 9.27 9.30
20/05/2016
The New Scheme 1,666,659 1,666,659 10/06/2015 11/06/2018 to 9.54 9.52

10/06/2022
The New Scheme 1,666,659 1,666,659 10/06/2015 11/06/2019 to 9.54 9.52

10/06/2022
The New Scheme 1,666,682 1,666,682 10/06/2015 11/06/2020 to 9.54 9.52

10/06/2022
4,302,000 5,000,000 (4,302,000) 5,000,000

* The vesting period of the share options is from the date of grant until the commencement of the exercise period.
** The exercise price of the share options is subject to adjustment in the case of rights or bonus issues, or other similar changes in the
Companys share capital.
*** The price of the Companys shares disclosed as at the date of the grant of the share options is the Hong Kong Stock Exchange closing
price on the trading day immediately prior to the date of the grant of the options. The price of the Companys shares disclosed as at the
date of the exercise of the share options is the weighted average of the Hong Kong Stock Exchange closing prices over all of the exercises
of options within the disclosure line.
On 10 June 2015, the Company granted an aggregate of 5,000,000 share options to certain eligible participants
under the New Scheme. Among these 5,000,000 share options, 2,300,000 options were granted to three
Executive Directors and an Alternate Director. The details of such grant are set out on pages 104 to 108.
The fair value of the share options granted on 10 June 2015 year was HK$15,320,459 (HK$3.06 each), of which
the Group recognised a share option expense of HK$2,219,000 during the year ended 31 December 2015.
The fair value of equity-settled share options granted during the year, was estimated as at the date of grant
using the Black-Scholes Model, taking into account the terms and conditions upon which the options were
granted. The following table lists the inputs to the models used:
Dividend yield 1.58%

Expected volatility 36.00%
Risk-free interest rate 1.41%
Expected life 7 years
Exercise price per share HK$9.54
Share price at grant date HK$9.49
The expected volatility reflect the assumption that the historic volatility over a period similar to the life of the
equity-settled share-based payments is indicative of future trends, which may not necessarily be the actual
outcome.
Apart from the foregoing, at no time during the year ended 31 December 2015 was the Company, or any of its
subsidiaries, a party to any arrangement to enable the directors or any of their respective spouses or minor
children to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other
body corporate.

Cash-settled share-based payments
Certain executive directors of the Company were granted cash-settled share-based payments which took effect
on 1 January 2013 and were calculated based on the Companys closing share price on the last trading day of
2015. The carrying amount of the liability relating to the cash-settled share-based payments as at 31 December
2015 was HK$6,451,000 (31 December 2014: HK$13,202,000), which was recorded in other payables and accruals
in the consolidated statement of financial position.
Some of the cash-settled share-based payments have a performance target which must be met before the cash-
settled share-based payments can be vested. Fair value of the cash-settled share-based payments is measured at
each reporting date using the Black-Scholes Model taking into account the terms and conditions upon which the
instruments were granted and the current likelihood of achieving the specified target.
As certain performance target was not met, the cash-settled share-based payment expenses recognized in
previous years amounting to HK$8,960,000 were reversed during the current year.
24. RESERVES
The amounts of the Groups reserves and the movements therein for the current and prior years are presented in
the consolidated statement of changes in equity on page 68 of the financial statements.
The contributed surplus of the Group represents the difference between the nominal value of share capital of
the subsidiaries acquired pursuant to the Group reorganisation on 28 November 2001 and the nominal value of
the shares in the Company issued in exchange therefor.
25. COMMITMENTS
(a) Capital Commitments
2015 2014
HK$000 HK$000
Contracted, but not provided for:

Construction of shelters for which concession rights are held 1,545 637
25. COMMITMENTS (continued)

(b) Commitments Under Operating Leases
The Group leases certain of its office buildings and concession rights under operating lease arrangements.
Leases for office buildings are negotiated for terms ranging from 1 to 10 years, and those for concession
rights are negotiated for terms ranging from 5 to 15 years.
At 31 December 2015, the Group had total future minimum lease payments under non-cancellable
operating leases falling due as follows:
2015 2014
HK$000 HK$000
Within one year 433,885 430,304

In the second to fifth years, inclusive 1,311,053 1,305,068
After five years 1,134,280 1,407,969
2,879,218 3,143,341
26. CONTINGENT LIABILITIES

During 2014, a supplier of the Group in China (the Supplier) has factored its accounts receivable allegedly due
from the Group (the Accounts Receivable) under certain supply contracts (the Purported Supply Contracts)
to certain financial institutions in China. Whilst the Purported Supply Contracts were allegedly entered into with
a subsidiary of the Company, the Group has confirmed that none of them is an authentic supply contract to
which it is a party. When the Accounts Receivable remained unpaid, the financial institutions commenced legal
proceedings against, among others, the Companys subsidiary to recover an aggregate amount of approximately
RMB115 million. As of the date of this report, the trial dates for these legal proceedings had yet to be fixed. As
the Group confirmed that it had not entered into any of the Purported Supply Contracts, the Group treated the
Purported Supply Contracts as being contractual fraud and reported the cases to the competent police
authority. The directors, taking into account the advice from the Groups legal counsel, believe that the Group
has a valid defence in law to the allegations against it and, accordingly, have not provided for any potential
claim arising from the litigations, other than the related legal and other costs.
On 8 January 2016, the Group received a notice from a District Court in the PRC (the Court) stating that a
plaintiff has initiated legal action against the Supplier and that the Court has ruled in such plaintiffs favour and
has frozen the Suppliers right to receive payment from the Group for the settlement of any outstanding liability
between the Supplier and the Group. The Court has issued a compulsory order requiring the Group to remit an
outstanding sum of about RMB17.6 million owing by the Group to the Supplier into the bank account of the
Court. The directors, taking into consideration the advice of the Groups legal counsel, believe that this
development will not result in the Group being liable for additional liability exceeding the outstanding liability
already taken up in the account under other payables and accruals, between the Supplier and the Group.
27. RELATED PARTY TRANSACTIONS

(a) In addition to the transactions detailed elsewhere in these financial statements, the Group had the
following transactions with related parties during the year, which constitute continuing connected
transactions as defined in Chapter 14A of the Listing Rules.
2015 2014
Notes HK$000 HK$000
Agency commission paid to GWH and WHM, companies in

which a director of the Company has the ability to
exercise direct or indirect influence over management (i) 20,440 18,670
Sales to GWH and WHM (ii) 327,201 302,530
Bus shelter cleaning and maintenance fees payable to

a company which has been an associate of a director
of the Company (iii) 38,885 42,280
Creative services fees payable to GWH (iv) 3,489 3,558
Agency fee for securing of media and advertising

display to BYH (v) 723
Notes:
(i) The agency commission paid to GWH and WHM was based on the standard percentage of gross sales rental revenue for outdoor
advertising spaces payable to other major third party agencies used by the Group. On 11 March 2013, WHA Joint Venture entered
into a three-year framework agreement with GWH for the years 2013, 2014 and 2015 on substantially the same terms as the
framework agreements previously entered into between WHA Joint Venture and GWH, pursuant to which GWH may, with the
consent of the WHA Joint Venture, assign part or all of the said agreement to an affiliated company or to such other company over
which Mr. Han Zi Dian may exercise influence over the management and day-to-day operations. On 30 May 2014, WHA Joint
Venture entered into a Supplemental Framework Agreement with GWH pursuant to which (i) the maximum amounts of gross
advertising sales from GWH under the Framework Agreement for the two years ending 31 December 2014 and 31 December 2015
will be increased from HK$285,000,000 and HK$315,000,000 to HK$374,000,000 and HK$404,000,000, respectively; and (ii) the
maximum amounts of the advertising commission payable to GWH under the Framework Agreement for the two years ending 31
December 2014 and 31 December 2015 will be increased from HK$23,000,000 and HK$25,000,000, to HK$30,000,000 and
HK$32,500,000, respectively.
GWH is a related party of the Company because Mr. Han Zi Dian is the brother of Mr. Han Zi Jing, an executive director of the
Company, and Mr. Han Zi Dian is able to exercise influence over the management and day-to-day operations as director and
general manager of GWH and controls the composition of a majority of the board of directors of GWH with his indirect interest of
14.2% in GWH.
WHM is an affiliated company of GWH and also a related party of the Company because Mr. Han Zi Dian is the brother of Mr. Han
Zi Jing, an executive director of the Company, and Mr. Han Zi Dian is able to exercise influence over the management and day-to-
day operations.
(ii) The sales to GWH and WHM were made according to published prices and conditions similar to those offered to other major
customers and advertising agencies of the Group.
27. RELATED PARTY TRANSACTIONS (continued)

(a) (continued)
Notes: (continued)
(iii) On 28 January 2014, WHA Joint Venture entered into a Framework Maintenance Services Agreement with Hainan White Horse
Holding Company Limited (White Horse Holding) in place of the maintenance services arrangements between WHA Joint
Venture and White Horse Holding. The Framework Maintenance Services Agreement was entered into for a fixed term and will
expire on 31 December 2016.
White Horse Holding is a related party of the Company because Mr. Han Zi Dian became interested in more than 50% of the voting
power of White Horse Holding following a capital injection into White Horse Holding in November 2009. Mr. Han Zi Dian was a
non-executive director of the Company from April 2001 to November 2012 and is the brother of Mr. Han Zi Jing, an executive
director of the Company.
Under the Framework Maintenance Services Agreement, WHA Joint Venture would pay a maintenance fee consisting of a
predetermined cost element and an incentive payment to White Horse Holding for the services provided by its branches. The
same basis for calculating payment of the maintenance fee is applicable to all service providers of the Group including third party
service providers.
Under the Framework Maintenance Services Agreement, the maintenance fees payable by WHA Joint Venture to White Horse
Holding for the financial years ending 31 December 2014, 2015 and 2016 shall not exceed HK$55,000,000, HK$60,000,000 and
HK$65,000,000, respectively. Maintenance fees shall be settled by WHA Joint Venture on a monthly basis before the tenth day of
every month.
(iv) On 28 January 2014 WHA Joint Venture entered into a creative services agreement with GWH effective from 1 January 2014 to 31
December 2016, whereby GWH agreed to provide creative design services for poster, sales and marketing materials and company
profiles to the Group. In the opinion of the directors, these transactions were entered into on terms similar to those available from
independent third parties.
(v) During the year, WHA Joint Venture entered into certain arrangements with Beijing YiHong Media Company Limited (BYH) and a
third party company whereby BYH agreed to act as agent and represent WHA Joint Venture to rent certain shelters from the third
party company for the display of WHA Joint Venture advertising campaign and provide advertising display and other services to
WHA Joint Venture. BYH is a subsidiary of WHM and also a related party of the Company because Mr. Han Zi Dian is the brother of
MR. Han Zi Jing, an executive director of the Company, and Mr. Han Zi Dian is able to influence over the management and day-to-
day operations of WHM. In the opinion of the directors, these transaction were entered into on terms similar to those available
from independent third parties.
(b) Outstanding Balances with Related Parties

The Group had outstanding receivables from GWH and WHM of HK$2,064,000 (31 December 2014:
HK$88,575,000) and HK$104,690,000 (31 December 2014: Nil), respectively, as at the end of the reporting
period. The balances are unsecured, interest-free and have no fixed terms of repayment (note 19).
(c) Compensation of key management personnel of the Group:
2015 2014
HK$000 HK$000
Short-term employee benefits 21,746 22,979

Performance-related bonuses 1,908 1,789
Cash-settled share-based payments (6,829) 8,090
Total compensation paid to key management personnel 18,007 33,260
28. FINANCIAL INSTRUMENTS BY CATEGORY

The carrying amounts of each of the categories of financial instruments as at the end of the reporting period are
as follows:
Financial Assets
Loans and receivables

2015 2014
HK$000 HK$000
Other receivables 105,331 77,999

Trade receivables 687,157 631,882
Due from related parties 106,754 88,575
Pledged deposits and restricted cash 1,530 1,597
Cash and cash equivalents 689,322 1,049,604
1,590,094 1,849,657
Financial Liabilities
Financial liabilities at fair

value through profit or Financial liabilities
loss at amortised cost Total
2015 2014 2015 2014 2015 2014
HK$000 HK$000 HK$000 HK$000 HK$000 HK$000
Other payables 6,451 13,202 578,624 665,819 585,075 679,021

6,451 13,202 578,624 665,819 585,075 679,021
29. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS

The carrying amounts and fair values of the Group and the Companys financial instruments, other than those
with carrying amounts that reasonably approximate to fair values, are as follows:
Carrying amounts Fair Values

2015 2014 2015 2014
HK$000 HK$000 HK$000 HK$000
Financial liabilities
Cash-settled share-based payments 6,451 13,202 6,451 13,202
6,451 13,202 6,451 13,202
Management has assessed that the fair values of cash and cash equivalents, pledged deposits and restricted
cash, trade receivables, amounts due from related parties, financial assets included in prepayments, deposits
and other receivables, and financial liabilities included in other payables approximate to their carrying amounts
largely due to the short-term maturities of these instruments.
The Groups corporate finance team is responsible for determining the policies and procedures for the fair value
measurement of financial instruments. The corporate finance team reports directly to the chief financial officer.
At each reporting date, the corporate finance team analyses the movements in the values of financial
instruments and determines the major inputs applied in the valuation. The valuation is reviewed and approved
by the chief financial officer.
The fair value of cash-settled share-based payments is measured using valuation techniques which incorporate
various market observable inputs including the spot share prices. The carrying amount of cash-settled share-
based payments is the same as their fair value.
As at 31 December 2015, cash-settled share-based payments were measured at fair value using significant
observable inputs (Level 2) 2. There were no transfers of fair value measurements between Level 1 1 and Level 2
and no transfers into or out of Level 33 for both financial assets and financial liabilities (2014: Nil).
1.
Level 1: fair values measured based on quoted prices (unadjusted) in active markets for identical assets or liabilities
2.
Level 2: fair values measured based on valuation techniques for which all inputs which have a significant effect on the recorded fair value
are observable, either directly or indirectly
3.
Level 3: fair values measured based on valuation techniques for which any inputs which have a significant effect on the recorded fair value
are not based on observable market data (unobservable inputs)
30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Groups principal financial instruments comprise mainly cash and short-term deposits. The Group has
various other financial assets and liabilities such as trade receivables and other payables, which arise directly
from its operations.
The main risks arising from the Groups financial instruments are foreign currency risk, credit risk and liquidity
risk. The board of directors reviews and agrees policies for managing each of these risks and they are
summarised below.
Foreign Currency Risk

The Groups only investment in the PRC is its operating vehicle, WHA Joint Venture, which solely conducts
business within the PRC. Leaving aside expenses incurred by the Groups Hong Kong office, the bulk of its
turnover, capital investments and expenses are denominated in RMB. As at the date of these financial
statements, the Group had not experienced any difficulties in obtaining government approval for its necessary
foreign-exchange purchases. During the year ended 31 December 2015, the Group did not issue any financial
instruments for hedging purposes.
The following table demonstrates the sensitivity at the end of the reporting period to a reasonably possible
change in the RMB exchange rate, with all other variables held constant, of the Groups net profit (due to
changes in the fair value of monetary assets and liabilities).
Increase/ Increase/
(decrease) (decrease)
in RMB rate in net profit
% HK$000
2015
If Hong Kong dollar weakens against RMB 5% 15,064

If Hong Kong dollar strengthens against RMB (5%) (15,064)
2014
If Hong Kong dollar weakens against RMB 5% 14,299

If Hong Kong dollar strengthens against RMB (5%) (14,299)
Credit Risk
The Group trades only with recognised and creditworthy third parties. The Groups trading terms with its
customers are mainly on credit, except for new customers, where payment in advance is normally required. The
credit period is generally for a period of 90 days extending up to 180 days for major customers. Overdue
balances are reviewed regularly by senior management. The Groups trade receivables relate to a diversity of
numerous customers and are non- interest-bearing.
Further quantitative data in respect of the Groups exposure to credit risk arising from trade receivables are
disclosed in note 17 to the financial statements.
30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)

Liquidity Risk
The Group continued to be in a strong financial position at the end of 2015, with cash and cash equivalents
amounting to HK$689,322,000 as at 31 December 2015.
The Group financed its operations and investment activities with internally generated cash flows.
The maturity profile of the Groups financial liabilities as at the end of the reporting period, based on the
contractual undiscounted payments, is as follows:
2015
3 to
Less than less than
On demand 3 months 12 months 1 to 2 years Total
HK$000 HK$000 HK$000 HK$000 HK$000
Other payables 413,574 171,501 585,075

413,574 171,501 585,075
2014
3 to
Less than less than
On demand 3 months 12 months 1 to 2 years Total
HK$000 HK$000 HK$000 HK$000 HK$000
Other payables 390,374 275,445 13,202 679,021

390,374 275,445 13,202 679,021
30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)

Capital Management
The primary objective of the Groups capital management is to safeguard the Groups ability to continue as a
going concern and to maintain healthy capital ratios in order to support its business and maximise shareholders
value.
The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions.
To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes for
managing capital during the years ended 31 December 2015 and 31 December 2014.
The Groups policy currently is to maintain a low gearing ratio. This policy will be reviewed on an annual basis.
Net debt includes other payables and accruals, less pledged deposits and cash and cash equivalents. Capital
includes equity attributable to owners of the parent. The gearing ratio as at the end of the reporting period is as
follows:
2015 2014
HK$000 HK$000
Other payables and accruals 645,741 731,143

Less:
Pledged deposits and restricted cash (1,530) (1,597)
Cash and cash equivalents (689,322) (1,049,604)
Net surplus (45,111) (320,058)
Equity attributable to owners of the parent 2,687,663 2,916,237
Total capital 2,687,663 2,916,237
Capital and net debt 2,642,552 2,596,179
Gearing ratio
31. STATEMENT OF FINANCIAL POSITION OF THE COMPANY

Information about the statement of financial position of the Company at the end of the reporting period is as
follows:
2015 2014
HK$000 HK$000
NON-CURRENT ASSETS
Property, plant and equipment 374 503
Investments in subsidiaries 836,242 1,081,536
Total non-current assets 836,616 1,082,039
CURRENT ASSETS
Other receivables 1,616 1,539
Cash and cash equivalents 206,563 254,839
Total current assets 208,179 256,378
CURRENT LIABILITIES
Other payables 12,553 18,892
Total current liabilities 12,553 18,892
NET CURRENT ASSETS 195,626 237,486
TOTAL ASSETS LESS CURRENT LIABILITIES 1,032,242 1,319,525
Net assets 1,032,242 1,319,525
EQUITY
Share capital 54,170 53,740
Other reserves 978,072 1,265,785
Total equity 1,032,242 1,319,525
Han Zi Jing Teo Hong Kiong

Director Director
31. STATEMENT OF FINANCIAL POSITION OF THE COMPANY (continued)

Note:
A summary of the Companys reserves is as follows:
Share Share Exchange

option premium Contributed fluctuation Retained
reserve account surplus reserve profits Total
HK$000 HK$000 HK$000 HK$000 HK$000 HK$000
At 1 January 2014 8,608 825,752 370,423 16,628 (1,454) 1,219,957

Other comprehensive loss (1,311) (1,311)
Total comprehensive income/

(loss)
for the year (1,311) 124,695 123,384
Share options exercised (1,393) 3,865 2,472
Equity-settled share option
arrangements 470 470
Final 2013 dividend paid (80,498) (80,498)
At 31 December 2014 7,685 829,617 289,925 15,317 123,241 1,265,785
Total comprehensive income

for the year 83,361 83,361
Share options exercised (6,375) 17,689 11,314
Equity-settled share option
arrangements 2,219 2,219
Final 2014 dividend paid (81,255) (81,255)
2014 special dividend paid (258,312) (45,040) (303,352)
At 31 December 2015 3,529 847,306 31,613 15,317 80,307 978,072
The contributed surplus of the Company represents the difference between the then combined net asset value
of the subsidiaries acquired pursuant to the reorganisation and the nominal value of the Companys shares
issued in exchange therefor.
Under the Bermuda Companies Act 1981, the Company may make distributions to its shareholders out of the
contributed surplus under certain circumstances.
The share option reserve comprises the fair value of share options granted which are yet to be exercised, as
further explained in the accounting policy for share-based payments in note 3 to the financial statements.
32. APPROVAL OF THE FINANCIAL STATEMENTS

The financial statements were approved and authorised for issue by the board of directors on 3 February 2016.
Glossary 121
accounts payable Money owed to vendors.
accounts receivable Money owed by customers.
accounts receivable turnover The ratio of net credit sales to average accounts receivable, a measure of
how quickly customers pay their bills.
average accounts receivable The weighted average number of days for which the balance owing by
outstanding days customer is outstanding.
bus shelter Refers to a bus shelter, taxi stand or road sign. These three are grouped
together because their operational requirements, and the marketing and
sales efforts for them, are essentially the same.
concession rights Bus shelter concessions are granted by entities authorised by local
governmental agencies in China which have control over the construction
and management of bus shelters. Companies granted concession rights
pay an annual fixed rental fee to these entities.
debt to equity ratio The ratio of a companys net debts to its equity attributable to equity
holders of the parent. (net debts/equity attributable to equity holders of
the parent) x 100%.
display panel An advertising display unit within a bus shelter upon which the same
advertisement is posted on both sides.
EBITDA Earnings before interest, tax, depreciation or amortisation.
EBITDA margin Equal to EBITDA divided by turnover. EBITDA margin measures the extent
to which cash operating expenses use up revenue.
free cash flow EBITDA (before gain and losses on disposal, impairment and write-down of
concession rights and other assets and equity-settled share option
expenses) less cash outflow on capital expenditure, less income tax and net
interest expense.
frequency An industry-accepted method of judging the potential effectiveness of a

medium. Frequency reflects the average number of times an individual is
exposed to an advertising message during a specific period of time.
Group Clear Media Limited and its subsidiaries.
IRR Internal Rate of Return (also called dollar-weighted rate of return). The
present value of future cash flows plus the final market value of an
investment or business opportunity equal the current market price of the
investment or opportunity.
liquidity current assets/current liabilities.

122 Glossary
Listing Rules Rules Governing the Listing of Securities on The Stock Exchange of Hong
Kong Limited.
media Advertising outlets for advertising including radio, outdoor, television,

Internet, magazines, newspapers and direct mail.
medium The industry term used to describe one of the media advertising outlets,
e.g. television is usually the most expensive advertising medium or,
where the context requires, an individual product offered in respect of
such media.
outdoor advertising One of the advertising media that communicates to people when they are
outside their homes, and includes advertising on billboards, advertising on
and in public transportation vehicles and terminals, advertising panels in
airports and malls, and advertising on street furniture.
Reach An industry-accepted term which describes the potential effectiveness of a

media advertising schedule by reflecting the number of different people
who hear or see a commercial campaign.
return on asset (profits attributable to owners of the parent/average total assets) x 100%.
return on equity (profits attributable to owners of the parent/average equity attributable to

owners of the parent) x 100%.
SAIC State Administration for Industry and Commerce.
street furniture/street furniture Includes such forms of outdoor advertising as bus shelters, taxi stands,
displays road signs, phone kiosks, information and newspaper stands, public toilets,
freestanding information panels, benches and street lights.
transit Advertising displays affixed to moving vehicles or positioned in the

common areas of transit stations, terminals and airports.
unipoles Large-format advertising displays intended for viewing at extended

distances, generally more than 50 feet. Unipole displays include, but are
not limited to, 30-sheet posters, 8-sheet posters, vinyl-wrapped posters,
bulletins, wall murals, and stadia or arena signage.
12-sheet equivalent One actual 12-sheet panel, or two 6-sheet panels, or three 4-sheet panels.
Financial Summary 123
2015 2014 2013 2012 2011
RESULTS (HK$000)
Revenue 1,832,723 1,760,676 1,647,455 1,522,036 1,485,898
EBITDA 792,909 708,857 662,317 619,245 547,456
EBIT 435,969 370,891 347,542 312,284 275,129
Profit attributable to owners of the parent 280,522 240,214 201,008 219,236 187,542
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION DATA (HK$000)
Current assets 1,627,792 1,887,121 1,710,537 2,148,673 1,853,036
Current liabilities 727,430 772,642 652,015 591,993 532,233
Equity attributable to owners of the parent 2,687,663 2,916,237 2,826,882 3,274,602 3,078,602
CASH FLOW DATA (HK$000)

Cash generated from operations 646,022 680,452 715,330 681,653 674,173
FINANCIAL RATIOS
Current ratio (times) 2.24 2.44 2.62 3.63 3.48
EBITDA margin (%) 43.3 40.3 40.2 40.7 36.8
Net profit margin (%) 15.3 13.6 12.2 14.4 12.6
124 Corporate Information
DIRECTORS: REGISTERED OFFICE AUTHORISED REPRESENTATIVES

Executive Directors: Clarendon House Teo Hong Kiong
Joseph Tcheng 2 Church Street Jeffrey Yip
(Chairman) Hamilton HM 11
Han Zi Jing Bermuda INVESTOR RELATIONS CONTACT
(Chief Executive Officer) Jeffrey Yip
Teo Hong Kiong LEGAL ADVISORS
(Chief Financial Officer) Hong Kong and United States Law PR CONSULTANT
Zhang Huai Jun Sullivan & Cromwell iPR Ogilvy & Mather
(Chief Operating Officer)
PRC Law CORPORATE WEBSITES
Non-Executive Directors:
King & Wood PRC Lawyers www.clear-media.net
William Eccleshare www.irasia.com/listco/hk/clearmedia
Peter Cosgrove Bermuda Law
Zhu Jia
Conyers Dill & Pearman
Cormac OShea
AUDITORS
Independent Non-Executive
Directors: Ernst & Young
Desmond Murray
PRINCIPAL BANKERS
Leonie Ki Man Fung
Wang Shou Zhi HSBC
Thomas Manning Shanghai Pudong Development Bank
Alternate Director: PRINCIPAL SHARE REGISTRAR
Zou Nan Feng (alternate to MUFG Fund Services

Zhang Huai Jun) (Bermuda) Limited
The Belvedere Building
COMPANY SECRETARY 69 Pitts Bay Road
Pembroke HM08
Jeffrey Yip
Bermuda
HEAD OFFICE
HONG KONG SHARE REGISTRAR
Room 1202
Tricor Tengis Limited
12th Floor
Level 22, Hopewell Centre
The Lee Gardens
183 Queens Road East
33 Hysan Avenue
Hong Kong
Causeway Bay
Hong Kong
Design, Production and Printing: REF Financial Press Limited www.ref.com.hk

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E Apr 21, 2016 - Annual Report 2015

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2 Financial Highlights

BALANCE SHEET DATA (HK$000)

CASH FLOW DATA (HK$000)

Fact Sheet at a Glance 3

Shareholder Information as at 31 December 2015

Clear Channel KNR

Financial Year End 31 December

In addition, we continue to test new digital opportunities in new cities.

10 Management Discussion and Analysis

12 Management Discussion and Analysis

DESCRIPTION OF THE BUSINESS AND Given the challenging environment, we have

14 Management Discussion and Analysis

Product Quality and Innovation Change in Laws, Regulations, Policies or

Management Discussion and Analysis 15

16 Management Discussion and Analysis

Key Cities Among the mid-tier cities where the

Management Discussion and Analysis 17

Electricity costs decreased by 2.9% mainly EBITDA

18 Management Discussion and Analysis

EBIT As at 31 December 2015, the Group

Management Discussion and Analysis 19

20 Management Discussion and Analysis

The increase in prepayments, deposits and Assets and Liabilities

Management Discussion and Analysis 21

Exposure to Foreign Exchange Risk Liquidity, Financial Resources, Borrowing

22 Management Discussion and Analysis

Material Acquisitions and Disposals Contingent Liabilities

Management Discussion and Analysis 23

during the year. As of 31 December 2015,

about 43% of our total bus shelter panels are

with LED lighting structures and we plan to

In addition, we have installed light

24 Management Discussion and Analysis

KEY RELATIONSHIPS OUTLOOK

During the year, we are not aware of any

Mr. Eccleshare holds an M.A. in history from Trinity College Cambridge.

TEO HONG KIONG

Chief Financial Officer

ZHANG HUAI JUN

Mr. Zhu has been a non-executive director since August 2011.

WANG SHOU ZHI

Mr. Wang has been a Director of the Company since 2001.

Ms. Ki has been a Director of the Company since 2004.

Corporate Governance Report 31

32 Corporate Governance Report

Number of meetings attended and held

INDEPENDENT NON-EXECUTIVE DIRECTORS

Corporate Governance Report 33

CHAIRMAN AND CEO

34 Corporate Governance Report

APPOINTMENT, RE-ELECTION AND REMOVAL OF DIRECTORS

ROLES OF THE BOARD

Corporate Governance Report 35

MEMBERS OF THE AUDIT COMMITTEE

36 Corporate Governance Report

MEMBERS OF THE AUDIT COMMITTEE (continued)

Audit fees 2,902 2,704

Corporate Governance Report 37

MEMBERS OF THE REMUNERATION COMMITTEE

EXECUTIVE DIRECTORS REMUNERATION: BASIC SALARY

NON-EXECUTIVE DIRECTORS REMUNERATION

38 Corporate Governance Report

MEMBERS OF THE NOMINATION COMMITTEE

CAPITAL EXPENDITURE COMMITTEE